Multiple Choice
When a firm leaves a perfectly competitive industry,
A) the individual demand curves facing remaining firms shift toward the point of minimum average cost in the long run.
B) short-run industry equilibrium is reestablished at a new point along the original short-run industry supply curve.
C) the short-run industry supply curve shifts to the right.
D) at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.
Correct Answer:
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