answer choice for first click to select number of firm will

answer choice for first click to select - number of firm will stay, firm will exit, firm will enter

answer choice for first click to select second -fall to 150, fall to 100, rise above 200, remain the same

Suppose that there are 50 identical firms in a perfectly competitive industry. The minimum average total cost for each firm in this industry is $100, which is reached at an output of 150 units. Currently, the market price is $120, and each firm is producing 200 units of output In the short run, the quantity supplied by the industry is until the market price (Cick to select). and each firm in the industry In the long run, (Click to select producesunits. Thus, the long-run supply curve is: Oan upward-sloping line starting at $100 O a horizontal line starting at $100. a horizontal line starting at $150 O an upward-sloping line starting at $150.

Solution

1> In the short run, the quantity supplied is 200x50=10,000 units

2> In the long run, firms will enter until market price fall to 100 and each firm produces 150 units.

Reason

Firms will enter if they can earn a positive profit, thus firms will enter till the point when the price is same as the minimum average total cost.

3> c> a horizontal line starting at $150