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Figure 11.4.3 Refer to Figure 11.4.3, which shows the cost curves and mar...

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A graph titled, price and cost (dollars per unit) versus quantity (units).A graph plots two convex curves and a horizontal line. The first convex curve falls from top left to mid-bottom passes through (10, 12). The curve rises through mid-bottom to top right is labeled, A T C. The second convex curve rises from bottom left to mid-top passes through (10, 12). The curve rises through mid-top to the top right is labeled M C. Both the curves intersect each other at point (10, 12). A horizontal line that starts from (0, 10) to (10, 10) is labeled M R.

Figure 11.4.3

Refer to Figure 11.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. How will this market change in the long run?

In the long run,

firms that remain in the market will reduce production.

firms that remain in the market will expand production.

market demand will increase.

firms will enter the market.

❌

market supply will increase.

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