Price P AC Perfect Competition MC Q Quantity per month AC P= AR= MR new firms will enter the market and price will rise existing firms will exit the market and price will fall new firms will exit the market and price will rise new firms will enter the market and price will fall the existing firms will continue to earn profit since they are protected by barr to entry

Q: We expect that firms in perfectly competitive markets can earn higher economic profits in the short…

A: Perfectly competitive market refers to the market which is characterized by the presence of many…

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Q: What is the mathematical requirement for a firm to exit a Perfectly Competitive Market in the…

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Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

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Q: In a perfectly competitive market, what is the marginal revenue curve

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A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…