The figure to the right represents the cost structure for a perfectly competitivefirm with its average total cost (ATC) curve, average variable (AVC) curve, andmarginal cost (MC) curve.MC17.00..Suppose the market price is $17.00 per unit. Will firms enter or exit the industryin the long run?ATCIf markot price is $17.00, then firms willthe market in theAVClong run.What effect will firms entering have on the market price?When firms enter,O A. market demand will decrease, decreasing price.B. the marginal cost of production will increase, increasing price.OC. the average total cost of production will increase, increasing price.O D. market supply will increase, decreasing price.QuantityPrice and cost

In a competitive firm there are large number of firms selling identical products thus having no…

The figure to the right represents the cost structure for a perfectly competitive firm with its average total cost (ATC) curve, average variable (AVC) curve, and marginal cost (MC) curve. MC Suppose the market price is $17.00 per unit. Will firms enter or exit the industry in the long run? 17.00 ATC If market price is $17.00, then firms will the market in the long run. AVC What effect will firms entering have on the market price? When firms enter, A. market demand will decrease, decreasing price. B. the marginal cost of production will increase, increasing price. O C. the average total cost of production will increase, increasing price. D. market supply will increase, decreasing price. Quantity Price and cost

The figure to the right represents the cost structure for a perfectly competitive firm with its average total cost (ATC) curve, average variable (AVC) curve, and marginal cost (MC) curve. MC Suppose the market price is $17.00 per unit. Will firms enter or exit the industry in the long run? 17.00 ATC If market price is $17.00, then firms will the market in the long run. AVC What effect will firms entering have on the market price? When firms enter, A. market demand will decrease, decreasing price. B. the marginal cost of production will increase, increasing price. O C. the average total cost of production will increase, increasing price. D. market supply will increase, decreasing price. Quantity Price and cost

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 5SQP

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