Suppose a Perfectly Competitive Market Is in a Long-Run Equilibrium

question 232

Multiple Choice

Suppose a perfectly competitive market is in a long-run equilibrium when a permanent decrease in the market demand occurs. In the long run, which of the following definitely occurs?

• A) The price decreases.
• B) The number of firms decreases.
• C) The firms' marginal cost increases.
• D) Marginal revenue increases.

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