SRATC MC P, MC, MR, SRATC, LRATC LRATC 105 ----MC SRATCo SRATC MC SRATC3 80 - -MC- MC 62 SRATC, MC SRATC2 45 30 32,000 62,000 100,000 165,000 185,000 205,000 9 Suppose that the typical firm in this Perfectly Competitive industry is producing the profit maximizing/loss minimizing output level with plant SRATC2. If the market price is $20, The industry is not in equilibrium, firms will exit because they are incurring losses The industry is in equilibrium The industry is not in equilibrium, firms will enter attracted by profits The industry is not in equilibrium because firms have an incentive to contract their plant size The industry is not in equilibrium because firms have an incentive to decrease their output level None of these answers is correct