
What will the exit of existing firms from a competitive market do to market supply and market prices
A) It will increase market supply and increase market prices.
B) It will increase market supply and decrease market prices.
C) It will decrease market supply and increase market prices.
D) It will decrease market supply and decrease market prices.
Correct Answer:
Verified
Q147: When new firms enter a perfectly competitive
Q148: In a competitive market that is characterized
Q149: Figure 14-9 Q150: Figure 14-8 Q151: In the long-run equilibrium of a competitive Q153: When all firms and potential firms in Q154: If all existing firms and all potential Q155: What signals the entry and exit decisions Q156: In calculating accounting profit,what do accountants typically Q157: In a market that allows free entry
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