Suppose that all firms in a perfectly competitive industry are experiencing economic losses to varying degrees.One can predict that
A) the market price will fall.
B) market supply will increase.
C) market demand will decrease.
D) market supply will decrease.
E) the number of firms will remain the same.

Question

Quizplus · Accepted Answer

Firms experiencing economic losses will exit the market, leading to a decrease in market supply.

Suppose That All Firms in a Perfectly Competitive Industry Are