Detail

The increase in fixed costs lead to short run losses which in turn lead to exit in the long run. This, in turn shifted back industry supply raising market price until it equaled the minimum of the new higher ATC curve.

28. Again considering a perfectly competitive industry for which property taxes increased, over time the industry will adjust to a new long-run equilibrium. The new equilibrium will differ from the old in that:

There will be fewer firms and market price will be higher.
There will be fewer firms but market price will be the same. Market price must be higher since total costs (due to fixed costs) have risen.
There will be fewer firms and market price will be lower. Market price must be higher since total costs (due to fixed costs) have risen.
There will be more firms and market price will be higher. There must be fewer firms since the only way for price to rise in the long run is for firms to exit. It can increase in the short run due to an increase in demand or an increase in variable costs.
There will be more firms but market price will be the same. There must be fewer firms since the only way for price to rise in the long run is for firms to exit, and market price must be higher since total costs (due to fixed costs) have risen.