To eliminate losses in a perfectly competitive market,firms exit the industry.This exit results in

Question

Quizplus · Accepted Answer

When firms exit the industry, the market supply decreases. This is because there are now fewer firms producing goods and services. As a result, the equilibrium price typically increases, since the decrease in supply puts upward pressure on prices. Therefore, a decrease in market supply is the most accurate answer.

To Eliminate Losses in a Perfectly Competitive Market,firms Exit the Industry.This