ATC 142 2o 24 O The ec D O SolutionAns is D At point B since

ATC 14.2- 2o 24 O The ec D O

Ans is D

At point B, since price is greater than minimum of ATC due to which firm earns positive economic profit and thus in long run new firms will enter due to free entry and exit and supply curve will shift to the right in the industry.

New equilibrium wil be reached at point C where all firms earns normal profit and P=Min of ATC.

ATC 14.2- 2o 24 O The ec D O SolutionAns is D At point B, since price is greater than minimum of ATC due to which firm earns positive economic profit and thus

ATC 142 2o 24 O The ec D O SolutionAns is D At point B since

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