Graph with a downward sloping straight line demand curve and marginal revenue curve twice as steep as the demand curve. A marginal cost curve intersects the marginal revenue curve at output fifty. At that output average cost is six dollars and the price on the demand curve is ten dollars. The marginal cost curve intersects the demand curve at quantity eighty and price seven. Suppose the figure represents a firm that is operating in a monopolistically competitive market. In the long run, you would expect: Question 4 options: demand to shift left and decrease price to the point where P = MC. demand to decrease and price to fall to the point where P = AC. both demand and price to stay the same. both demand and price to increase as unprofitable firms leave the industry