Multiple Choice
A perfectly competitive market is in short-run equilibrium with price below average total cost.Which one of the following is not a prediction of the long-run consequences of such a situation?
A) Price will rise.
B) Market output will increase.
C) Firms will exit the market.
D) The output of each existing firm will increase.
E) Economic profit will be zero.
Correct Answer:
Verified
Correct Answer:
Verified
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