In a perfectly competitive market, in the long run a permanent decrease in the market demand results in a smaller number of firms.

Name: In a perfectly competitive market, in the long run a permanent decrease in the market demand results in a smaller number of firms.
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In the long run, a permanent decrease in market demand leads to lower prices and profits, causing some firms to exit the market, reducing the number of firms.

In a Perfectly Competitive Market, in the Long Run a Permanent