Suppose the figure illustrates the long-run average cost curve (AC) and the marginal cost curve (MC) for a representative firm in a perfectly competitive market. Assume all firms in the industry have the same cost structure. The other figure illustrates the market, with a market supply curve (S) and a market demand curve (D). How many firms are there initially? The industry has firms. (Enter your response as an integer value.) 3 pages Grapher ayer.aspx?cultureld=en-us&theme=econ&style=highered&disableStandhuli Price (dollars per unit) Price (dollars per unit) 64.00 60.00 56.00 52.00- 48.00- 44,00 40.00 36.00- 32.00- 28,00 8 24.00 20.00- 16.00- 12.00- 8.00- 4.00- 0.00 64.00- 60.00 56.00 52.00 48.00- 44.00- 40.00 36.00 32.00- 28,00 24.00 a 20.00 16.00- 0 Quantity S MC Clear all AC 10 Q Q

Suppose the figure illustrates the long-run average cost curve (AC) and the marginal cost curve (MC) for a representative firm in a perfectly competitive market. Assume all firms in the industry have the same cost structure. The other figure illustrates the market, with a market supply curve (S) and a market demand curve (D). How many firms are there initially? The industry has firms. (Enter your response as an integer value.) 3 pages Grapher ayer.aspx?cultureld=en-us&theme=econ&style=highered&disableStandhuli Price (dollars per unit) Price (dollars per unit) 64.00 60.00 56.00 52.00- 48.00- 44,00 40.00 36.00- 32.00- 28,00 8 24.00 20.00- 16.00- 12.00- 8.00- 4.00- 0.00 64.00- 60.00 56.00 52.00 48.00- 44.00- 40.00 36.00 32.00- 28,00 24.00 a 20.00 16.00- 0 Quantity S MC Clear all AC 10 Q Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When should a firm exit the market in the long run?
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