18. Given that the short-run cost and demand conditions shown above for the competitive price-searcher firm are representative for all firms in the industry, what will happen to a typical firm in this industry in the long run (more than one answer is correct)?

a. The firm will make long-run economic profits.

b. The firm will face competition from new entrants into the industry, causing this firm's demand to decline until zero economic profits are restored.

c. The firm will face competition from new entrants into the industry, causing this firm's demand to increase until it earns zero economic profits.

d. The firm will see some of its competitors exit from the industry, causing this firm's demand to increase until zero economic profits are restored.

e. The firm will make short-run economic profits.

19. In some industries where firms experience declining average total costs over the full range of output that consumers are willing to buy (more than one answer is correct):

a. a larger firm will very likely have lower per-unit costs.

b. many firms will tend to emerge from the competitive process.

c. a single large firm will likely develop, and it will have cost advantages that protect it from potential rivals.

d. a single large firm will develop and it will buy out any smaller rival firms because the small firms can produce at a lower per-unit cost.

e. smaller firms likely have higher per-unit costs.