Multiple Choice
Which of the following statements about a purely competitive market where sellers are earning excess profit is FALSE?
A) Excess profit will disappear over the long run.
B) The market supply curve will shift to the right.
C) Entry of new sellers into the market will shift the demand curve for each individual seller's product upward.
D) Over the long run, the demand curve for each individual seller's product will just touch the minimum point on the firm's long-run average total cost curve.
Correct Answer:
Verified
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