The market for a perfectly competitive industry has an equilibrium price of $5 and the minimum average cost for the firms in this market is $3.In the long run, we would expect
A) each firm to produce less output than their current output.
B) the number of firms to fall.
C) each firm's profits to remain at $2 per unit.
D) each firm's average cost to rise.
Correct Answer:
Verified
Q191: Figure 10-7 Q192: Figure 10-6 Q193: The exit of existing firms from an Q194: In long-run equilibrium under perfect competition, Q195: Figure 10-6 Q197: The process of adjustment to a new Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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A)the firm
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