Assume that the market for corn is purely competitive. Currently, firms growing corn are suffering economic losses. In the long run, we can expect

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In a purely competitive market, when firms are suffering economic losses, it indicates that the market price is below the average cost of production. In the long run, this situation leads to some firms exiting the market. As firms exit, the supply of corn decreases, leading to an increase in the market price of corn until firms remaining in the market are able to cover their costs and earn normal profits.

Assume That the Market for Corn Is Purely Competitive