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Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. W

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In the long run the number of firms decreases, supply decreases, and price increases.
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The perfectly competitive firm in the graph has AVC<P<ATC, P=MR. The price is between average total cost and average variable cost. It means the firm is making losses in the short run.
The losses discourage some of the firms in the market, and the firm's exit in the long run. It decreases the number of firms in the long run. Decreases market supply in the long run and shifts to the left which increase the price, in the long run, a long run price is equal to minimum average total costs.

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