. Suppose that initially the price is $20 in the long-run in a perfectly competitive market. Firms are making zero economic profits. Then the market demand increases permanently, leading some rms to enter the market. What will be the new long-run equilibrium price? a. Lower than $20 b. Higher than $20 c. $20 . True/False A perfectly competitive rm currently produces and sells 800 units of output at a price of $12 per unit. The rm's average xed cost is AFC=$4 and its variable cost is 1ifC=$EL30fL This rm should shut down in the short-run and exit in the long-run. . A firm operates in a perfectly competitive market. The firm is producing 40 units of output [Q=40], has an average total cost [ATC] of production of $5 [ATC=5], and is earning $440 economic prot in the short run. TWhat is the current market price? a. $12 b. $14 c. $16 d. None of the above . Suppose a representative perfectly competitive rm has the following cost function: TC = 200 + 2.50}. The short-run market demand and supply are given by: Q9 = 1200 - BOP and Q5 = 4UP. What is the Variable Cost [VG] at the profit maximizing level of output [Q] for the rm? a. VC=$5 b. 1UTI=$10 c. VC=$ 15 d. None ofthe above