The following diagrams show the market for a good, as well as the cost curves for an individual firm in the market. Assume that all firms are identical. Choose from the following letters to state what will happen in the long run. Individual Firm GA $ MC ATC GA $ Market S Compared to the short run outcome, in the long run, individual firm price will Choices: A) Increase B) Decrease c) Stay the Same D) Left E) Right F) No Where ***Choose the letters that you think will fit. If you think that it is decrease and left, put BD in the first answer box*** since the market supply will shift
The following diagrams show the market for a good, as well as the cost curves for an individual firm in the market. Assume that all firms are identical. Choose from the following letters to state what will happen in the long run. Individual Firm GA $ MC ATC GA $ Market S Compared to the short run outcome, in the long run, individual firm price will Choices: A) Increase B) Decrease c) Stay the Same D) Left E) Right F) No Where ***Choose the letters that you think will fit. If you think that it is decrease and left, put BD in the first answer box*** since the market supply will shift
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following diagrams show the market for a good, as well as the cost curves for an individual firm in the market. Assume that all firms are identical.
Choose from the following letters to state what will happen in the long run.
Individual Firm
GA
MC
Choices:
ATC
$
Compared to the short run outcome, in the long run, individual firm price will
Market
S
D
since the market supply will shift
A) Increase B) Decrease C) Stay the Same D) Left E) Right
F) No Where
***Choose the letters that you think will fit. If you think that it is decrease and left, put BD in the first answer box***
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