What will happen to the number of firms in the industry


Problem

Consider the long-run for the industry described in the preceding question.

(a) What will happen to the number of firms in this industry in the long run?

(b) The minimum of the ATC curve for this firm occurs at a value of $30. Given that you know this, what output will be produced in the industry in the long run?

(c) Once you know the output produced in the industry, and the minimum of the ATC curve, calculate the number of firms that will produce in the long run ‘normal profit' equilibrium.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What will happen to the number of firms in the industry
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