Assuming a Downward-Sloping Demand Curve,a Decrease in Production Costs for Firms

question 75

Multiple Choice

Assuming a downward-sloping demand curve,a decrease in production costs for firms in a perfectly competitive market initially in long-run equilibrium will cause a(n) :

• A)permanent increase in the price.
• B)economic profit for firms in the short run.
• C)increase in demand.
• D)increase in firms' marginal revenue.

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