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A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

Question 161

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. As a result,


A) the marginal revenue curve for each firm shifts upward.
B) the demand curve for each firm shifts upward.
C) marginal cost for each firm falls.
D) average total cost for each firm rises.
E) a and b

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