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QUESTION 9 The figure shows the short run conditions of a firm in a perfectly competitive market. In the long run, - --will------------the industry so that the market supply curve shifts to the ------------until prices-----------sufficiently to allow all firms to make a normal profit only. Unit revenue and cost R13 R10 1200 a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise MC AC AR=MR E₁ Quantity

QUESTION 9 The figure shows the short run conditions of a firm in a perfectly competitive market. In the long run, - --will------------the industry so that the market supply curve shifts to the ------------until prices-----------sufficiently to allow all firms to make a normal profit only. Unit revenue and cost R13 R10 1200 a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise MC AC AR=MR E₁ Quantity

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QUESTION 9 The figure shows the short run conditions of a firm in a perfectly competitive market. In the long run, - --will------------the industry so that the market supply curve shifts to the ------------until prices-----------sufficiently to allow all firms to make a normal profit only. Unit revenue and cost R13 R10 1200 a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise MC AC AR=MR E₁ Quantity
Transcribed Image Text:QUESTION 9 The figure shows the short run conditions of a firm in a perfectly competitive market. In the long run, - --will------------the industry so that the market supply curve shifts to the ------------until prices-----------sufficiently to allow all firms to make a normal profit only. Unit revenue and cost R13 R10 1200 a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise MC AC AR=MR E₁ Quantity
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