Suppose a Perfectly Competitive Market Is in a Short-Run Equilibrium

question 227

Multiple Choice

Suppose a perfectly competitive market is in a short-run equilibrium.If some firms exit the market,the profit of the remaining firms ________; if some firms enter the market,the profit of each existing firm ________.

• A) decreases; is unchanged
• B) increases; decreases
• C) increases; is unchanged
• D) is unchanged; is unchanged
• E) decreases; increases