Question 1
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.
Refer to Figure 12.4. Currently in sector
X, price is
◦ greater than average cost.
◦ less than average cost.
◦ equal to average cost.
◦ More information is needed to answer the question.
Question 2
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.
Refer to Figure 12.4. Currently in sector
Y, price is
◦ greater than average cost.
◦ less than average cost.
◦ equal to average cost.
◦ More information is needed to answer the question.
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