A perfectly competitive market is in short-run equilibrium with price below average total cost.Which one of the following is not a prediction of the long-run consequences of such a situation?
A) Price will rise.
B) Market output will increase.
C) Firms will exit the market.
D) The output of each existing firm will increase.
E) Economic profit will be zero.
Correct Answer:
Verified
Q90: Which one of the following does not
Q91: Use the figure below to answer the
Q92: Use the figure below to answer the
Q93: Use the figure below to answer the
Q94: Use the information below to answer the
Q96: If firms exit an market,the
A)market supply curve
Q97: Use the figure below to answer the
Q98: Use the figure below to answer the
Q99: Use the table below to answer the
Q100: If firms in a perfectly competitive market
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents