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'2; Consider a perfect competition scenario, where the market demand is given by p: 100_ _ Q! market supply is 8 given by p: i

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'2; Consider a perfect competition scenario, where the market demand is given by p: 100_ \"_ Q! market supply is 8 given by p: i Q' Suppose on the firm level, the firm's marginal costs are given by MC = 5Q= and average total 8 65 costs are given by ATC = 25g + _. Q Given your answer to the last question, what is the best long term prediction for how the market will adjust? O Firms will enter the market, and eventually make a long run profit. O Firms will leave the market, driving the prots to zero. O Firms will enter the market, driving profits to zero. 0 Firms will leave the market, ensuring a positive long term profit for all remaining firms

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