Information for questions 20-28 The following figure shows t…
Information for questions 20-28 The following figure shows the cost curves for a firm in a perfectly competitive market. The curves depicted are marginal cost (MC), average cost (AC), and average variable cost (AVC). Market demand is given by Q=3500 – 5 x p. For the first four questions in this group (20-23, not all in the Canvas version), the firm is operating in the short run, with a market price is $50. For the numeric questions, only the exact answer is accepted, so make sure to double check your reasoning. You can get exact answers with the usual convention that lines cross grid points, and each other, where they seem to cross. Enter 0, if the question cannot be answered at all with the information provided. Now consider the transition from the short run to the long run. We’ll assume that in the long run many firms identical to the one depicted can enter or exit the market freely. What best describes the transition from the short run to the long run?