QUESTION 14 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC =625+ Q- and MC = 2Q. For the industry, suppose that supply is given by S = Q . However, suppose now that there is an increase in demand, so that demand is given by and for the industry, demand is given by P = 500 -Q. Will this market outcome be sustainable? That is, do you expect firms to leave the market, enter the market, or neither? O Firms will enter the market. Firms will leave the market. O Firms will neither enter nor leave the market. O There could be barriers to entry. QUESTION 15 Consider a monopoly, where the demand curve is given by P = 25-Q. MR = 25-20 TO =