Multiple Choice
Suppose that there are 1,000 firms in a perfectly competitive industry, each with a short-run total cost curve given by TC = 800 + 8Q + 0.1Q2 and marginal cost curve given by MC = 8 + 0.2Q. Assuming no other factors change, in the long-run we expect this industry to ____.
A) expand, as firms enter the market
B) expand, as firms increase their production
C) contract as firms exit the market
D) have no change
Correct Answer:
Verified
Correct Answer:
Verified
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