Answer Happy

PP (0) P ATC AVC Q MC ATC AVC Q P P (11) P P ATC AVC MC L ATC AVC (IV) Q Refer to the graphs above of perfectly competitive firms. Which graph(s) depict situations in which market prices will rise in the future: O III and IV because the firm in graph IV will immediately shutdown and the firm in graph III will shut down in the long run. Firms will exit the industry and cause the market price to rise. O III and IV because the firms in both graphs will immediately shutdown and some firms in the industry will exit causing price to rise O Il because firms are not making economic profits, which will cause firms to exit the industry and push up the market price.