Narrbegin Exhibit 7

Narrbegin 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:

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