-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.
A) in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition
B) in the short-run, the demand curve and average revenue shift as other firms leave the market and decrease competition
C) in the long-run, the demand curve and average revenue shift as other firms enter the market and increase competition
D) in the long-run, the demand curve and average revenue shift as other firms leave the market and decrease competition
Correct Answer:
Verified
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