In the long run, assuming that market demand stays the same, if firms in a competitive industry expand, then the product price will tend to fall as a result.

Question

Quizplus · Accepted Answer

In a competitive market, if firms expand and produce more goods, the increased supply, assuming demand remains constant, will lead to a decrease in the product's price to balance supply and demand.

In the Long Run, Assuming That Market Demand Stays the Same