The market price in a perfectly competitive industry in short-run equilibrium is €3 and the minimum average cost for all firms is €2.50. In the long run, we would expect an increase in

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In the long run, the minimum average cost for each firm is €3, which is equal to the market price. Therefore, profits are zero and there is no incentive for new firms to enter the industry. However, if the market price remains at €3, existing firms will continue to operate in the industry. As a result, there will be no change in each firm's output or profit. However, if the market price increases above €3, each firm's profit will increase, leading to an increase in the number of firms entering the industry. Therefore, we would expect an increase in the number of firms in the long run, but not an increase in each firm's output or profit.

The Market Price in a Perfectly Competitive Industry in Short-Run