Exhibit 7-10 Long-Run Perfectly Competitive Industry

Exhibit 7-10 Long-run perfectly competitive industry

-Refer to Exhibit 7-10 and assume that a perfectly competitive industry is in long-run equilibrium at point A,and the demand curve shifts from D₁ to D₂.Which of the following is a part of the industry-adjustment process?

A) The price will temporarily rise at point C
B) New firms will charge less.
C) Firms will temporarily make positive economic profits.
D) New firms will exit the industry.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free