ill in the blanks to make the following statements correct.

Part $2$

a$.$ & b$.$ If existing firms in a perfectly competitive industry are earning$$ profits, firms will

enter

the industry. As a$$ result, the industry supply curve will shift to the

right

and price will

fall

$.$

If existing firms in a perfectly competitive industry are incurring$$ losses, firms will

exit

the industry. As a$$ result, the industry supply curve will shift to the

left

and price will

rise

$.$

Part $3$

c$.$ In the long$$ run, all firms in a perfectly competitive industry$($assuming they have the same cost$$ curves$)$ will be earning

$$

positive

zero

negative

profits and will be producing at the

$$

minimum

maximum

point of their$$ short$-$run

$$

marginal cost

average total cost

curve and the

$$

maximum

minimum

point of their$$ long$-$run

$$

marginal cost

average cost

curve.