Tommy's Tires operates in a perfectly competitive market. If tires sell for $50 each and the cost per tire
is $40 at the profit-maximizing output level, then in the long run
(hint: think about how profit determines the entry or exit of new companies)
O more firms will enter the market.
some firms will exit from the market.
O the equilibrium price per tire will rise.
O the cost per unit will fall.