QUESTION 18 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC =400 + Q-, and MC = 2Q. For the corresponding market, suppose that demand is given by P = 200--Q and supply is given by P = -Q. 2 2 Given the firm's profits, is this situation sustainable in the long run? That is, will firms have an incentive to enter or leave the market? O Not sustainable, firms will enter the market. Not sustainable, firms will leave the market. O Sustainable, firms will neither enter or leave the market. O Cannot be determined. QUESTION 19 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC = 400 +Q-, and MC = 2Q. For