Challenger Technique
Q output	TC	TFC	TVC	ATC	MC	AVC	AFC
0	100
1	190
2	270
3	340
4	400
5	470
6	550
7	640
8	750
9	880
10	1030
11	1200
Original Technique
Q output	TC	TFC	TVC	ATC	MC	AVC	AFC
0	150
1	230
2	300
3	360
4	435
5	515
6	600
7	695
8	800
9	915
10	1045
11	1195
12	1385

consider the long-run situation remembering that positive profits will attract more competitors to the industry and losses will repel firms from the industry.

1. Why will one technique of production prevail over the other?
2. How low will price need to fall before firms using the less efficient technique of production will go out of business in the long-run? Answer with a number: $_____________
3. Ultimately, when all market adjustment is complete, what will be the price in this market? Answer with a number: $_____________
4. Why will the market's price adjustment stop at the price you identified in question the previous question?