QUESTION 13 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC -625 + 02 and MC=20, and for the industry, demand is given by P = 100 - Q and supply is given by S = Q. Judging from the profitability of the firm, do you think this market outcome is sustainable in the long run? That is, do you expect firms to enter the market, leave the market, or leave the market? Firms will enter the market. Firms will leave the market. Firms will neither leave nor enter the market. O There could be barriers to entry. QUESTION 14