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A Perfectly Competitive Industry Is in Long-Run Equilibrium

Question 164

Multiple Choice

A perfectly competitive industry is in long-run equilibrium. If demand for the product increases, we can expect


A) firms to enter the market.
B) firms to exit the market.
C) no change in the number of firms in the market.
D) There is not enough information to tell what will happen to the number of firms in the market.

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