In the Long Run,the Movement of Firms into and Out

question 29

Multiple Choice

In the long run,the movement of firms into and out of a perfectly competitive market will influence price by

• A)shifting the market demand curve
• B)shifting the market supply curve
• C)making the market supply curve less elastic
• D)making the market demand curve less elastic
• E)shifting the supply curve for each firm in the market

---

Definitions:

Purchase Returns

Goods returned by the buyer to the seller due to defects, excess supply, or other reasons.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Contra Revenue Account

An account used to record reductions in gross revenue, such as discounts, returns, and allowances.