The Cranberry Market Is Perfectly Competitive

question 254

Multiple Choice

The cranberry market is perfectly competitive.Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries.As time passes,the price of cranberries ________ and the initial firms' economic ________.

• A) falls; profit will be eliminated
• B) rises still higher; loss will be eliminated
• C) rises still higher; profit will not change
• D) falls; loss will be increased
• E) falls; profit will not change

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