Consider the following cost curves faced by each firm: TC = 60 + 0.5q and MC = q, where q is the individual output for each firm in a perfectly competitive market. Assume the market demand is described by theequation: Q = 100 - 2P where Q is the market output in 100s of units. Currently, the market price is $10. What would one expect to happen in this market in the long run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. In the long run, firms will either enter or exit the market. a In the long run, firms will enter the market. b. In the long run, firms will exit the market. In the long run, firms will neither enter nor exit the market.
Consider the following cost curves faced by each firm: TC = 60 + 0.5q and MC = q, where q is the individual output for each firm in a perfectly competitive market. Assume the market demand is described by theequation: Q = 100 - 2P where Q is the market output in 100s of units. Currently, the market price is $10. What would one expect to happen in this market in the long run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. In the long run, firms will either enter or exit the market. a In the long run, firms will enter the market. b. In the long run, firms will exit the market. In the long run, firms will neither enter nor exit the market.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 5SQP
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![Consider the following cost curves faced by each firm: TC = 60 +0.5q and MC = q, where q is the individual output for each
firm in a perfectly competitive market. Assume the market demand is described by theequation: Q = 100 - 2P where Q is the
market output in 100s of units. Currently, the market price is $10. What would one expect to happen in this market in the
long run?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
Forko
In the long run, firms will either enter or exit the market.
a
b.
In the long run, firms will enter the market.
In the long run, firms will exit the market.
In the long run, firms will neither enter nor exit the market.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40a20a8f-d7c3-43c0-adff-b86ae2a85d2d%2Fe69a6aa4-d67b-4ca3-a0ab-6d72b6af7b63%2Fq6dldjt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following cost curves faced by each firm: TC = 60 +0.5q and MC = q, where q is the individual output for each
firm in a perfectly competitive market. Assume the market demand is described by theequation: Q = 100 - 2P where Q is the
market output in 100s of units. Currently, the market price is $10. What would one expect to happen in this market in the
long run?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
Forko
In the long run, firms will either enter or exit the market.
a
b.
In the long run, firms will enter the market.
In the long run, firms will exit the market.
In the long run, firms will neither enter nor exit the market.
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