When firms exit a perfectly competitive industry, the market supply curve shifts to the left.

Name: When firms exit a perfectly competitive industry, the market supply curve shifts to the left.
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Question

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When firms exit a perfectly competitive industry, the total quantity supplied in the market decreases. This causes the market supply curve to shift to the left, resulting in a decrease in the equilibrium quantity and potentially an increase in the equilibrium price.

When Firms Exit a Perfectly Competitive Industry, the Market Supply