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In Competitive Price-Searcher Markets, Short-Run Economic Profits Will Lead to

Question 158

Multiple Choice

In competitive price-searcher markets, short-run economic profits will lead to


A) long-run economic profits.
B) the exit of firms from the market and the eventual restoration of zero long-run economic profits.
C) the entry of additional firms into the market and the eventual restoration of zero long-run economic profits.
D) the entry of additional firms into the market, which increases the demand for the product of each firm in the market.

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