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When an Innovation Is Created by One Firm in a Perfectly

Question 127

Multiple Choice

When an innovation is created by one firm in a perfectly competitive market,


A) the market price will rise
B) less output will be produced by its competitors
C) the long-run equilibrium price remains the same but the economic profit of its competitors falls
D) some firms leave because the price will fall
E) other firms will imitate the innovator

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