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A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

Question 56

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. By the time all adjustments have been made, price will be __________ its original level if the industry is a(n) __________ cost industry.


A) below; constant
B) above; increasing
C) at; decreasing
D) at; increasing
E) above; decreasing

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