The figure represents the cost curves of two firms operating in different perfectly competitive industries. This economy consists only of industries 1 and 2 If the market price in industry 1 is $3 and the market price in industry 2 is $4, we should expect in the long run. OA both firms to stay in their respective industries B. firm A to exit industry 1 and enter industry 2 OC. frm B to exit industry 2 and enter industry 1 OD. firm A to exit industry 1 and not enter industry 2 Price $11 9 7 5 3 1 0 FirmA in industry 1 J 20 40 V 60 80100 Quantity ATC Finoy Price 00 100 Qu
The figure represents the cost curves of two firms operating in different perfectly competitive industries. This economy consists only of industries 1 and 2 If the market price in industry 1 is $3 and the market price in industry 2 is $4, we should expect in the long run. OA both firms to stay in their respective industries B. firm A to exit industry 1 and enter industry 2 OC. frm B to exit industry 2 and enter industry 1 OD. firm A to exit industry 1 and not enter industry 2 Price $11 9 7 5 3 1 0 FirmA in industry 1 J 20 40 V 60 80100 Quantity ATC Finoy Price 00 100 Qu
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![K-
The figure represents the cost curves of two firms operating in different perfectly competitive
industries. This economy consists only of industries 1 and 2
If the market price in industry 1 is $3 and the market price in industry 2 is $4, we should
expect
in the long run
OA both firms to stay in their respective industries
OB. firm A to exit industry 1 and enter industry 2
OC. firm B to exit industry 2 and enter industry 1
OD firm A to exit industry 1 and not enter industry 2
Price
$11
9
5
0
20
Firm in industry 1
40
60
00
100 Quantity
Price
0
40
80
100 Qu](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fd574dc-13b6-465a-8f4d-a9d3367cc949%2F5ea1ac70-7b22-48b3-8a5b-965591f4d846%2F3pokq8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:K-
The figure represents the cost curves of two firms operating in different perfectly competitive
industries. This economy consists only of industries 1 and 2
If the market price in industry 1 is $3 and the market price in industry 2 is $4, we should
expect
in the long run
OA both firms to stay in their respective industries
OB. firm A to exit industry 1 and enter industry 2
OC. firm B to exit industry 2 and enter industry 1
OD firm A to exit industry 1 and not enter industry 2
Price
$11
9
5
0
20
Firm in industry 1
40
60
00
100 Quantity
Price
0
40
80
100 Qu
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