When a Competitive Market Experiences an Increase in Demand That

question 52

Multiple Choice

When a competitive market experiences an increase in demand that induces an increase in producer costs,which consequence is most likely

• A)The long-run market supply curve will be upward sloping.
• B)The condition of free entry into the market will be violated.
• C)Producer profits must fall in the long run.
• D)The long-run market supply remains constant at minimum long-run average cost.

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