-Suppose the cost curves in the above figure apply to all firms in the market. If the initial price is P1, firms are _______ and some firms will _______ the industry.

Name: -Suppose the cost curves in the above figure apply to all firms in the market. If the initial price is P1, firms are _______ and some firms will _______ the industry.
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Question

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If the price is P1 and it is below the average total cost, firms are incurring an economic loss, which will lead some firms to leave the industry.

-Suppose the Cost Curves in the Above Figure Apply to All