With no barriers to entry or exit and when firms in a market are operating at a loss,we can expect other firms to exit,causing the ________ curve to shift to the ________ and making the equilibrium price ________ and the equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When firms exit the market due to losses, the supply curve shifts to the left, leading to an increase in equilibrium price and a decrease in equilibrium quantity.

With No Barriers to Entry or Exit and When Firms