In Problem 7, in the long run,

a. Do firms have an incentive to enter or exit the paper market?
b. If firms do enter or exit the market, explain how the economic profit or loss of the remaining paper producers will change.
c. What is the long-run equilibrium market price and the quantity of paper produced? What is the number of firms in the market?

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Price (dollars per box) 3.65 5.20 6.80 8.40 10.00 11.60 13.20 Quantity demanded (thousands of boxes per week) 500 450 400 350 300 250 200 Each producer of pape when it uses its lcast-cost plant: r has the following costs Average Otut Marginal cost vblecost total cost Average boxes dollars per per week additional box) 200 250 300 350 400 450 500 6.40 7.00 7.65 8.40 10.00 12.40 20.70 (dollars per box) 7.80 7.00 7.10 7.20 7.50 8.00 9.00 12.80 11.00 10.43 10.06 10.00 10.22 11.00