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Firms Exit a Competitive Market When They Incur an Economic

Question 19

Multiple Choice

Firms exit a competitive market when they incur an economic loss.In the long run,this exit means that the economic losses of the surviving firms


A) increase.
B) decrease until they equal zero.
C) decrease until economic profits are earned.
D) do not change.
E) might change but more information is needed about what happens to the price of the good as the firms exit.

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