Assume a Perfectly Competitive Industry Is in Long-Run Equilibrium at a Price

question 34

Multiple Choice

Assume a perfectly competitive industry is in long-run equilibrium at a price of $20. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price

• A) greater than $20.
• B) less than $20.
• C) of $20.
• D) either greater than or less than $20 depending on the magnitude of the decrease in demand.

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