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Suppose a Perfectly Competitive,increasing-Cost Industry Is in Long-Run Equilibrium When

Question 157

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Suppose a perfectly competitive,increasing-cost industry is in long-run equilibrium when market demand increases.In the long run,a typical firm _____


A) will stop production as total revenue no longer covers the average variable cost of production.
B) experiences a higher average total cost and equilibrium price.
C) experiences a lower average total cost and equilibrium price.
D) experiences the same equilibrium price but a greater average total cost.
E) experiences the same equilibrium price but a lower average total cost.

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