Samsung introduces a new manufacturing process that reduces the cost of producing memory. If Samsung prevents others from using their new manufacturing process, then which of the following is true in the short run?

A. Samsung's average total cost curve shifts downward.

B. All answers are correct.

C. The price of memory remains the same.

D. Samsung's profits increase.

Continuing the narrative from Question 10, suppose eventually Samsung's patent expires and other firms are able to use the new manufacturing process. What happens in the long run?

A. All of the answers are correct.

B. The market price of memory decreases.

C. The average total cost curve for all firms shifts downward.

D. Samsung's profits fall to zero.

Which of the following implies that the firm should close in the long run? Select the best possible answer.

A. Profit is equal to zero.

B. Average variable cost is greater than marginal cost.

C. Average variable cost is greater than price.

D. Average cost is greater than price.