Multiple Choice
Use the figure A Perfectly Competitive Market in the Short Run I. If the price in this market persists, what will happen in the long run?
Figure: A Perfectly Competitive Market in the Short Run I
A) Firms will enter the market, and the market supply curve shifts to the right, lowering the price.
B) Firms will exit the market, and the average total cost curve shifts down, returning the firm to profit.
C) Firms will exit the market, and the market supply curve shifts to the left, raising the price.
D) Firms will enter the market, raising the marginal cost curve and increasing profits.
Correct Answer:
Verified
Correct Answer:
Verified
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