When Market Demand Increases in a Competitive Industry

question 100

Multiple Choice

When market demand increases in a competitive industry,

• A)the number of firms increases, causing short-run market supply to increase.
• B)firms become less efficient.
• C)firms' marginal cost curves shift to the right.
• D)economic profits stay at zero because of competition.
• E)market price increases, making it possible for ATC curves to shift up.

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