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

Question 121

Multiple Choice

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


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

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