Solved

Use the Figure a Perfectly Competitive Market in the Short

Question 60

Multiple Choice

Use the figure A Perfectly Competitive Market in the Short Run IV. If the price in this market persists, what will happen in the long run?

Figure: A Perfectly Competitive Market in the Short Run IV
Use the figure A Perfectly Competitive Market in the Short Run IV. If the price in this market persists, what will happen in the long run? ​ Figure: A Perfectly Competitive Market in the Short Run IV   A)  Firms will enter the market, and the market supply curve shifts to the right, lowering the price. B)  Firms will exit the market, and the average total cost curve shifts down, returning the firm to profit. C)  Firms will exit the market, and the market supply curve shifts to the left, raising the price. D)  Nothing, firms have no incentive to enter or exit this market.


A) Firms will enter the market, and the market supply curve shifts to the right, lowering the price.
B) Firms will exit the market, and the average total cost curve shifts down, returning the firm to profit.
C) Firms will exit the market, and the market supply curve shifts to the left, raising the price.
D) Nothing, firms have no incentive to enter or exit this market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents