What Is the Effect of a Permanent Increase in Demand

question 75

Multiple Choice

What is the effect of a permanent increase in demand in a perfectly competitive market,with no external economies or diseconomies?

• A)Market price increases in the long run.
• B)Average cost decreases in the long run.
• C)Market price decreases in the long run.
• D)Average cost increases in the long run.
• E)Market price remains constant in the long run.

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