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If Purely Competitive Sellers Were Earning Excess Profits, You Would

Question 181

Multiple Choice

If purely competitive sellers were earning excess profits, you would expect:


A) existing sellers to collect their profits and leave the market over the long run.
B) new sellers to enter the market, and the market price to fall over the long run.
C) new sellers to enter the market, and the market price to rise over the long run.
D) no sellers to enter the market, and the market price to remain where it is over the long run.

Correct Answer:

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