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Title: Suppose a typical firm in a competitive industry has the following data in the short run: price = ... Post by: mktrujillo on Oct 3, 2022 Suppose a typical firm in a competitive industry has the following data in the short run: price = $4000; output = 1 million units; ATC = $4000; AVC = $3500. What will likely happen in the long run?
▸ In the long run, the industry will expand because firms are earning economic profits. ▸ In the long run, the industry will contract because firms are suffering losses. ▸ The size of the industry will remain the same in the long run. ▸ The typical firm would shut down, until the remaining firms have a higher price. ▸ There is not enough information to formulate an answer. Title: Suppose a typical firm in a competitive industry has the following data in the short run: price = ... Post by: lucypierce86 on Oct 3, 2022 Content hidden
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