QUESTION $16$

Consider the following setup for a perfectly competitive market: Suppose that for the firm, $TC=400+Q^2,$ and $MC=2Q.$ For the corresponding market, suppose that demand is given by $P=200-\frac{1}{2}Q$ and supply is given by $P=\frac{1}{2}Q.$

Now suppose that there is an increase in supply, so that $P=-120+\frac{1}{2}Q$ is the new supply curve. will firms have an incentive to enter or leave the market?