Suppose a Perfectly Competitive Market Is in Long-Run Equilibrium

question 52

Multiple Choice

Suppose a perfectly competitive market is in long-run equilibrium. If there is a permanent increase in demand

• A) at least in the short run, some firms will increase their output.
• B) at least in the short run, the price will increase initially.
• C) new firms will enter the market.
• D) All of the above answers are correct.

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