Question 1 all three questions

1. A perfectly competitive market is in short-run equilibrium with price at $50 and the average cost of businesses in the market at $40. a. Are businesses in this market making a loss or profit? Will businesses enter or leave the industry? What happens to the market supply curve and the profits or losses of businesses in the industry? b. At the initial price of $50, is the minimum-cost pricing rule being met? c. At the initial price of $50, is the marginal-cost pricing rule being met? Page 126