A company will shut down in the short run if it cannot cover its __________ and will exit the industry in the long run if it cannot cover its __________

Refer to Figure 9.4. If the government establishes a price floor of $40 and purchases the surplus, total consumer and producer surplus will be

A) $15. B) 30 widgets. C) $1,050. D) $1,200. E) $1,350

One difference between the short run and the long run is that perfectly competitive firms:

A. always earn positive economic profit in the short run, but never in the long run. B. can earn positive, negative, or zero economic profit in the short run, but will earn zero economic profit in the long run. C. earn zero economic profit in the short run, but will earn positive economic profit in the long run. D. always earn more economic profit in the long run.