SRATC MC P, MC, MR, SRATC, LRATC LRATC 105 - - -MC SRATCo SRATCA SRATC3 80 MC 62 SRATC, MC SRATC2 45 30 32,000 62,000 100,000 165,000 185,000 205,000 Suppose that the market price is $45 and the typical firm in this Perfectly Competitive industry is producing 50,000 units with plant SRATC1. None of these answers is correct The industry is not in equilibrium because firms have an incentive to decrease their output level The industry is not in equilibrium because firms have an incentive to increase their output level The industry is not in equilibrium, firms will enter attracted by profits The industry is in equilibrium The industry is not in equilibrium because firms have an incentive to contract their plant size