What will happen to market supply and the price of the good

Reference no: EM13234716

1. "The short run individual supply curve of a perfectly competitive firm is the firm's marginal cost curve."

Carefully explain the two exceptions to the statement above.

2. Suppose that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply and the price of the good as we move from the short run to the long run.

Reference no: EM13234716

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