With No Barriers to Entry or Exit and When Firms

question 89

Multiple Choice

With no barriers to entry or exit and when firms in a market are operating at a loss,we can expect other firms to exit,causing the ________ curve to shift to the ________ and making the equilibrium price ________ and the equilibrium quantity ________.

• A) demand; right; increase; increase
• B) demand; left; decrease; decrease
• C) supply; right; decrease; increase
• D) supply; left; increase; increase
• E) supply; left; increase; decrease

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