A Market with Constant Costs Is in Long-Run Equilibrium When

A market with constant costs is in long-run equilibrium when it experiences a permanent decrease in demand.
In the short run,firms in the market ________.
In the long run,some firms ________ the market.
Market supply ________ and the market price ________.
Market output ________ and in the long run each remaining firm makes ________ profit.

A) incur an economic loss;exit;decreases;rises until it reaches the firms' minimum average total cost;decreases;zero economic
B) make zero economic profit;enter;increases;falls;increases;an economic
C) incur an economic loss;exit;decreases;rises until it reaches the firms' minimum average total cost;decreases;an economic
D) make zero economic profit;exit;decreases;rises until it reaches the firms' minimum average variable cost;decreases;an economic
E) make an economic profit;enter;increases;falls;increases;economic profit

Correct Answer:

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