THE EXERCISE WILL BE ON FILE PLEASE I HAD TO TAKE MULTIPLE SCREENSHOT TO SHOW EVERYTHING

3. Entry and exit in the long run Suppose that toy manufacturers in a competitive price-searcher market earn negative profits in the short run. In this scenario, there manufacturers in the industry than there would be in long-run equilibrium. Now consider the long are fewer toy manufacturers are free to enter and exit the market. The following graph shows the demand curve in the market for toys. are more Considering the situation just described, shift the demand curve on the graph to show how the demand curve facing an individual firm in the industry would change in the long run. ? Firm's Demand Curve PRICE ( Dollars per toy) Firm's Demand Curve QUANTITY (Toys) Which of the following statements are true about a competitive price-searcher market? Check all that apply. Price is above marginal cost. Firms face high barriers to entry. O Price equals average total cost in the long run. Firms face low barriers to entry.3. Entry and exit in the long run Suppose that toy manufacturers in a competitive pricesearcher market earn negative prots in the short run. In this scenario, there V manufacturers in the industry than there would be in longrun equilibrium. Now consider the long run in which toy manufacturers are free to enter and exit the market. The following graph shows the demand curve in the market for toys. Considering the situation just described, shift the demand curve on the graph to show how the demand curve facing an individual rm in the industry would change in the long run. _0_ Firm's Demand Curve PRJCE (Dollars pertoy) Finn's emand Curve QUANTITY (Toys) Which of the following statements are true about a competitive priceisearcher market? Check all that apply. Cl Price is above marginal cost. Firms face high barriers to entry. Price equals average total cost in the long run. DUE] Firms face low barriers to entry