If perfect competitors are losing money in the short run,then in the long run there will be _____ firms in the industry and market price will _____.

Question

Quizplus · Accepted Answer

If perfect competitors are losing money in the short run, some firms will exit the industry in the long run, which will result in fewer firms in the industry. As the number of firms decreases, the supply of goods will decrease as well, which will cause the market price to rise in order to restore equilibrium.

If Perfect Competitors Are Losing Money in the Short Run,then