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The Following Figure Shows the Marginal Cost Curve and the Average

Question 38

Multiple Choice

The following figure shows the marginal cost curve and the average total cost curve of a firm operating in a perfectly competitive market. All of the other firms in this market have a cost structure similar to this firm's.
The following figure shows the marginal cost curve and the average total cost curve of a firm operating in a perfectly competitive market. All of the other firms in this market have a cost structure similar to this firm's.    -Refer to the figure above.Suppose the price in this market is $5.We expect ________. A)  the firms to start exiting this market B)  the firms to start entering this market C)  no entry or exit in this market D)  exit from this market, followed by entry of firms into this market
-Refer to the figure above.Suppose the price in this market is $5.We expect ________.


A) the firms to start exiting this market
B) the firms to start entering this market
C) no entry or exit in this market
D) exit from this market, followed by entry of firms into this market

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