Which of the following is least likely to occur during the long run in a perfectly competitive market experiencing economic profits?
A) A rightward shift in the market supply curve.
B) An increase in the market quantity demanded.
C) An increase in marginal revenue.
D) A decline in the ATC and MC curves.

Question

Quizplus · Accepted Answer

In the long run, new firms enter the market due to economic profits, increasing supply and driving prices down. Marginal revenue, which equals price in perfect competition, will decrease, not increase.

Which of the Following Is Least Likely to Occur During