Refer to the figure at right. When market price equals $40, we can expect A. exit of firms and a decrease in market price. B. entry of firms and a decrease in market price. C. exit of firms and an increase in market price. D. entry of firms and an increase in market price.
Refer to the figure at right. When market price equals $40, we can expect A. exit of firms and a decrease in market price. B. entry of firms and a decrease in market price. C. exit of firms and an increase in market price. D. entry of firms and an increase in market price.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 12P
Related questions
Question
![Dollars per
unit of
LMC
output
LAC
SMC
SAC
$40
P- MR
S30
12
Output](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bac870d-a313-4365-9fba-aff5dc7fd41b%2F383a8858-bda7-4bad-b8a3-53dbfbb52789%2Fnk6ln1o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Dollars per
unit of
LMC
output
LAC
SMC
SAC
$40
P- MR
S30
12
Output
![Refer to the figure at right. When market price equals $40, we can expect
A. exit of firms and a decrease in market price.
B. entry of firms and a decrease in market price.
C. exit of firms and an increase in market price.
D. entry of firms and an increase in market price.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bac870d-a313-4365-9fba-aff5dc7fd41b%2F383a8858-bda7-4bad-b8a3-53dbfbb52789%2Fsfzim1i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Refer to the figure at right. When market price equals $40, we can expect
A. exit of firms and a decrease in market price.
B. entry of firms and a decrease in market price.
C. exit of firms and an increase in market price.
D. entry of firms and an increase in market price.
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