What will happen to the number of firms producing mountain bikes in the long run?

Use Figure 14.2, which shows the situation facing Mike’s Bikes, a producer of mountain bikes, to work Problems 14 to 18. The demand and costs of other mountain bike producers are similar to those of Mike’s Bikes.

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FIGURE 14.2 Problems 14 to 18 400 MC ATC 350 ... 300 ... 250 .... 200 ... D. 150 100 MR 50 100 Quantity (mountain bikes per week) 200 Price and cost (dollars per bike)