Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. In the long run we should expect
A)firms to enter the industry, market supply to rise, and product price to fall.
B)firms to leave the industry, market supply to rise, and product price to fall.
C)firms to leave the industry, market supply to fall, and product price to rise.
D)no change in the number of firms in this industry.

Question

Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. In the long run we should expect
A)firms to enter the industry, market supply to rise, and product price to fall. 
B)firms to leave the industry, market supply to rise, and product price to fall. 
C)firms to leave the industry, market supply to fall, and product price to rise. 
D)no change in the number of firms in this industry.

Quizplus · Accepted Answer

The Answer of  Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. In the long run we should expect
A)firms to enter the industry, market supply to rise, and product price to fall. 
B)firms to leave the industry, market supply to rise, and product price to fall. 
C)firms to leave the industry, market supply to fall, and product price to rise. 
D)no change in the number of firms in this industry.

Refer to the Diagrams, Which Pertain to a Purely Competitive