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Refer to the Graphs Shown, Which Depict a Perfectly Competitive

Question 152

Multiple Choice

Refer to the graphs shown, which depict a perfectly competitive market and firm in a constant-cost industry. If market demand decreases from D0 to D1, in the long run: Refer to the graphs shown, which depict a perfectly competitive market and firm in a constant-cost industry. If market demand decreases from D<sub>0</sub> to D<sub>1</sub>, in the long run: A) new firms will enter this market and the price will return to P<sub>0</sub>. B) new firms will enter this market and the price will remain at P<sub>1</sub>. C) some firms will exit this market and the price will return to P<sub>0</sub>. D) some firms will exit this market and the price will remain at P<sub>1</sub>.


A) new firms will enter this market and the price will return to P0.
B) new firms will enter this market and the price will remain at P1.
C) some firms will exit this market and the price will return to P0.
D) some firms will exit this market and the price will remain at P1.

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