Solved

Under Perfect Competition,if Some Firms Are Taking Losses in the Short

Question 96

Multiple Choice

Under perfect competition,if some firms are taking losses in the short run,in the long run


A) equilibrium price will rise until all firms are earning zero economic profits.
B) those firms will cut back their output until they get to the level at which marginal cost equals price.
C) firms will leave the industry until all firms are making a profit.
D) those firms will earn losses until demand increases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents