Market Representative Firm MC A a MR = P $3.50 - ATC $2.50 - AVC 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm and the equilibrium price to supplying in that market on the right. In the long run, we should expect new firms to enter the market; increase existing firms to exit the market; decrease new firms to enter the market; decrease existing firms to exit the market; increase
Market Representative Firm MC A a MR = P $3.50 - ATC $2.50 - AVC 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm and the equilibrium price to supplying in that market on the right. In the long run, we should expect new firms to enter the market; increase existing firms to exit the market; decrease new firms to enter the market; decrease existing firms to exit the market; increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Market
Representative Firm
S1
MC
A
my
a
MR = P
$3.50 - -
АТС
$2.50
b.
AVC
D1
50,000
350
400
Quantity (Q)
Output (Q)
The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm
and the equilibrium price to
supplying in that market on the right. In the long run, we should expect
new firms to enter the market;
increase
existing firms to exit the market;
decrease
new firms to enter the market;
decrease
existing firms to exit the market;
increase](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b551779-a94f-4658-8ab9-cb1269496a60%2F10b3f0d4-0b89-4aad-aeba-27af34248aa6%2Fl9cnzbi9_processed.png&w=3840&q=75)
Transcribed Image Text:Market
Representative Firm
S1
MC
A
my
a
MR = P
$3.50 - -
АТС
$2.50
b.
AVC
D1
50,000
350
400
Quantity (Q)
Output (Q)
The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm
and the equilibrium price to
supplying in that market on the right. In the long run, we should expect
new firms to enter the market;
increase
existing firms to exit the market;
decrease
new firms to enter the market;
decrease
existing firms to exit the market;
increase
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