[All Steps] s 6 through 10 refer to the scenario that follows. A monopolistically competitive firm has the following short-run inverse demand, marginal
Question: Questions 6 through 10 refer to the scenario that follows. A monopolistically competitive firm has the following short-run inverse demand, marginal revenue, and cost schedules for a particular product:
P = $45 – $0.2Q
MR = $45 – $0.4Q
TC = $500 + $5Q
MC = $5
What do you think would happen in this market in the long run?
New firms would enter.
Some existing firms would leave.
Some existing firms would stay but no new firms would enter.
There is not enough information to make this determination.
Deliverable: Word Document 
(Solution Library) s 11 through 13 refer to the scenario that
![[Solution Library] s 11 through 13 refer](/images/solutions/MC-solution-library-75152.jpg "[Solution Library] s 11 through 13 refer to the scenario that follows.")
[Solution Library] s 11 through 13 refer to the scenario that follows.
Solution: s 11 through 13 refer to the scenario that follows.
![[See Steps] s 14 through 18 refer](/images/solutions/MC-solution-library-75154.jpg "[See Steps] s 14 through 18 refer to the information that follows.")
[See Steps] s 14 through 18 refer to the information that follows.
![[All Steps] s 14 through 18 refer](/images/solutions/MC-solution-library-75155.jpg "[All Steps] s 14 through 18 refer to the information that follows.")
[All Steps] s 14 through 18 refer to the information that follows.
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