How will this affect a typical firm that remains in the industry?

Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is Show more Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is making short-run losses. Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people that yearly CT scans are critical for good health. How will this affect a typical firm that remains in the industry? A) the firms supply curve shifts right and its marginal revenue curve shifts upwards as the market price rises and ultimately the firm starts making profits. B) The firms marginal revenue curve and average cost curve shift upwards in response to the increase in market price and advertising expenditure. The firm increases output until it starts breaking even. C) The marginal revenue curve shifts upwards the firms output increses along its marginal cost curve it expands production and eventually starts making profits. D) The marginal revenue curve shifts upwards the firms output increases along its marginal cost curve it expands production until it breaks even. Show less

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