In the graph below if the price persists at P*, the profit maximizing firm will 
A. shut down immediately.
B. shut down in the long run.
C. have a strategy that cannot be predicted without an ATC curve.
D. operate indefinitely.
Answer: B
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What will be an ideal response?
When economic profits in an industry are zero and implicit costs are positive: a. accounting profits will be greater than zero
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a. True b. False Indicate whether the statement is true or false
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