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Exhibit 8-19 Long-Run Perfectly Competitive Industry

Question 181

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Exhibit 8-19 Long-run perfectly competitive industry Exhibit 8-19 Long-run perfectly competitive industry   -As shown in Exhibit 8-19, assume that a perfectly competitive industry is in long-run equilibrium at point A and the demand curve shifts from D<sub>1</sub> to D<sub>2</sub>. Which of the following is a part of the industry adjustment process? A)  The price will temporarily rise at point B. B)  New firms will enter the industry. C)  Firms will temporarily make positive economic profits. D)  All of these.
-As shown in Exhibit 8-19, assume that a perfectly competitive industry is in long-run equilibrium at point A and the demand curve shifts from D1 to D2. Which of the following is a part of the industry adjustment process?


A) The price will temporarily rise at point B.
B) New firms will enter the industry.
C) Firms will temporarily make positive economic profits.
D) All of these.

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