You Are a Manager in a Perfectly Competitive Market

question 63

Multiple Choice

You are a manager in a perfectly competitive market.The price in your market is $14.Your total cost curve is C(Q) = 10 + 4Q + 0.5Q².What will happen in the long run if there is no change in the demand curve?

• A) Some firms will leave the market eventually.
• B) Some firms will enter the market eventually.
• C) There will be neither entry nor exit from the market.
• D) None of the preceding answers is correct.

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