Consider a perfectly competitive market that is in long-run equilibrium. Suppose a demand shock decreases demand. In this case: A. Firms will make short-run economic loss, inducing firms to enter B. Firms will make short-run economic profit, inducing firms to exit OC. Firms will make short-run economic profit, inducing firms to enter O D. Firms will make short-run economic loss, inducing firms to exit ..... As a result of the demand shock, the market supply curve will shift and long-run profits will end up being A. right; higher B. left; the same O C. left; lower D. right; the same O O

Consider a perfectly competitive market that is in long-run equilibrium. Suppose a demand shock decreases demand. In this case: A. Firms will make short-run economic loss, inducing firms to enter B. Firms will make short-run economic profit, inducing firms to exit OC. Firms will make short-run economic profit, inducing firms to enter O D. Firms will make short-run economic loss, inducing firms to exit ..... As a result of the demand shock, the market supply curve will shift and long-run profits will end up being A. right; higher B. left; the same O C. left; lower D. right; the same O O

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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