19. Refer to the following diagrams which pertain to a purely competitive firm producing output q and the industry in which it operates. MC ATC AVC MR P In the long run we should expect: A. firms to enter the industry, market supply to rise, and product price to fall. B. firms to leave the industry, market supply to rise, and product price to fall. C. firms to leave the industry, market supply to fall, and product price to rise. D. no change in the number of firms in this industry.
19. Refer to the following diagrams which pertain to a purely competitive firm producing output q and the industry in which it operates. MC ATC AVC MR P In the long run we should expect: A. firms to enter the industry, market supply to rise, and product price to fall. B. firms to leave the industry, market supply to rise, and product price to fall. C. firms to leave the industry, market supply to fall, and product price to rise. D. no change in the number of firms in this industry.
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 12P
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Transcribed Image Text:19. Refer to the following diagrams which pertain to a purely competitive firm producing
output q and the industry in which it operates.
MC
ATC
AVC
-MRP
In the long run we should expect:
A. firms to enter the industry, market supply to rise, and product price to fall.
B. firms to leave the industry, market supply to rise, and product price to fall.
C. firms to leave the industry, market supply to fall, and product price to rise.
D. no change in the number of firms in this industry.
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