If firms in a perfectly competitive market are incurring economic losses,then as time passes firms ________ and the market ________.

Question

Quizplus · Accepted Answer

When firms in a perfectly competitive market are incurring economic losses, over time, some firms will exit the market. This reduces the total supply of the product in the market, which is represented by a leftward shift in the supply curve.

If Firms in a Perfectly Competitive Market Are Incurring Economic