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The Graph Represents a Firm That Produces the Profit-Maximizing Quantity

Question 325

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The graph represents a firm that produces the profit-maximizing quantity in the short run. What will happen in the long run?
The graph represents a firm that produces the profit-maximizing quantity in the short run. What will happen in the long run?   A)  Market supply will increase, pushing prices lower. B)  Market supply will increase, pushing prices higher. C)  Market supply will decrease, pushing prices lower. D)  Market supply will decrease, pushing prices higher.


A) Market supply will increase, pushing prices lower.
B) Market supply will increase, pushing prices higher.
C) Market supply will decrease, pushing prices lower.
D) Market supply will decrease, pushing prices higher.

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