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Which of the Following Is False of Perfectly Competitive Firms

Question 200

Multiple Choice

Which of the following is false of perfectly competitive firms?


A) As new firms enter an industry where sellers are earning economic profits, the result will include a reduction in the equilibrium price.
B) In a constant-cost industry, the industry does not use inputs in sufficient quantities to affect input prices.
C) In a constant-cost competitive industry, the long-run effect of an increase in demand is an increase in industry output but no change in the industry price.
D) All are true.

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