Consider a perfectly competitive market depicted by the two figures below: (on the left) the industry supply and demand and (on the right) the marginal cost (MC), average total cost (ATC), and the marginal revenue (MR) for an individual firm in the market. Industry Price per unit S Representative firm MC ATC d = MR 9 Based on the figures above, firms that are operating in this market make continues, economic profits, and as long as this a. positive; the industry supply curve will shift to the left b. zero; new firms will not enter the market and existing firms will not leave either c. positive; new firms will enter the market and existing firms will not leave O d. negative; new firms will not enter the market and existing firms will leave
Consider a perfectly competitive market depicted by the two figures below: (on the left) the industry supply and demand and (on the right) the marginal cost (MC), average total cost (ATC), and the marginal revenue (MR) for an individual firm in the market. Industry Price per unit S Representative firm MC ATC d = MR 9 Based on the figures above, firms that are operating in this market make continues, economic profits, and as long as this a. positive; the industry supply curve will shift to the left b. zero; new firms will not enter the market and existing firms will not leave either c. positive; new firms will enter the market and existing firms will not leave O d. negative; new firms will not enter the market and existing firms will leave
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.1P: A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new...
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![Consider a perfectly competitive market depicted by the two figures below: (on the left) the industry supply and demand
and (on the right) the marginal cost (MC), average total cost (ATC), and the marginal revenue (MR) for an individual firm
in the market.
Industry
Price per unit
S
$A
Representative firm
MC
ATC
d = MR
Based on the figures above, firms that are operating in this market make
continues,
economic profits, and as long as this
a. positive; the industry supply curve will shift to the left
b. zero; new firms will not enter the market and existing firms will not leave either
c. positive; new firms will enter the market and existing firms will not leave
d.
negative; new firms will not enter the market and existing firms will leave](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8bd931f2-5b39-45d0-8baa-442b3e2d13f8%2F5a12bbd1-cc4b-4cd4-9dde-4195c38476c7%2Fn9e3pm9_processed.png&w=3840&q=75)
Transcribed Image Text:Consider a perfectly competitive market depicted by the two figures below: (on the left) the industry supply and demand
and (on the right) the marginal cost (MC), average total cost (ATC), and the marginal revenue (MR) for an individual firm
in the market.
Industry
Price per unit
S
$A
Representative firm
MC
ATC
d = MR
Based on the figures above, firms that are operating in this market make
continues,
economic profits, and as long as this
a. positive; the industry supply curve will shift to the left
b. zero; new firms will not enter the market and existing firms will not leave either
c. positive; new firms will enter the market and existing firms will not leave
d.
negative; new firms will not enter the market and existing firms will leave
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