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If a Perfectly Competitive Market Is in Long-Run Equilibrium and There

Question 375

Multiple Choice

If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then


A) some firms will incur economic losses.
B) firms are no longer maximizing profits.
C) some firms must immediately exit.
D) each firm must produce less output in the new long run equilibrium and earn less economic profit.

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