If firms are losing money in a purely competitive industry, then the long-run adjustments in this situation will cause the market supply to
A) increase, and consequently the representative firm's profits will increase.
B) decrease, and consequently the representative firm's profits will increase.
C) increase, and consequently the representative firm's profits will decrease.
D) decrease, and consequently the representative firm's profits will decrease.
Correct Answer:
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Q116: Suppose that an industry's long-run supply curve
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Q118: Q119: An increasing-cost industry is the result of Q120: If firms enter a purely competitive industry, Q122: The long-run supply curve would be perfectly Q123: Q124: The long-run supply curve under pure competition Q125: The long-run market supply curve would be Q126: 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
A)higher
