Price and cest TET Supply of per pound per peane studen Deme

Price and cest TET Supply of per pound per peane) studen Demend TET 0 Quantity housands of peends) studen er in the market The graphs above are for the apple market Theco aro supply and demand and cost curves for a typic a fa Using the graphs. Whcn of the follwig statements is trwe? O A. The fium wil produce 30 thousand pounds of apples in tho stont run and earn an economit profit Now frmes wllenter the market and OB. The fim wll wuoduce 30 thousans prunds ot appkes in tho short run and ourn an econoni O C. Thc fim will produce 30 lousands pounds of arpins in the short run and oan an aconomic profit. In the long run the fiem will broak oven c curve to the left forced to ext the industry in tho long run Th,fu ?? ic prot New fims will enter the industry, as a result the firm wll be TET studen st \"prod Ke 30th sand points tappis n the short run a dea ireconom K proa ittwould earn a greater pronturi pe luced at the low D. point on the A TC curve Click to select your answer

Solution

Ans: The firm will produce 30 thousand pounds of apple in the short run and earn an economic profit. In the long run the firm will break even.

Explanation:

Due to positive economic profit in the short run, new firms will enter into the industry until all the firms once again earns zero economic profit. This zero economic profit is called break even situation.