Suppose a Perfectly Competitive Industry Is in Long-Run Equilibrium

question 253

Multiple Choice

Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a lower long-run price, we know that

• A) this is a decreasing-cost industry.
• B) this is an increasing-cost industry.
• C) some firms will be losing money in the long run.
• D) after further adjustments, price will rise to its original level.

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