Price (per unit) P MC D P B Quantity (units per week) ATC Market Price P= MR Given the current market price in a competitive market, we expect to see O firms exit the industry, driving up the market price. O firms exit the industry, driving down the market price. O no change in the number of firms in the industry and no change in the market price. O firms enter the industry, driving down the market price.

Price (per unit) P MC D P B Quantity (units per week) ATC Market Price P= MR Given the current market price in a competitive market, we expect to see O firms exit the industry, driving up the market price. O firms exit the industry, driving down the market price. O no change in the number of firms in the industry and no change in the market price. O firms enter the industry, driving down the market price.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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