Asked by Grace Thomas on Apr 26, 2024
Verified
If perfect competitors are losing money in the short run,then in the long run there will be _____ firms in the industry and market price will _____.
A) fewer;rise
B) fewer;fall
C) more;rise
D) more;fall
Perfect Competitors
Market participants in a perfectly competitive market where no single buyer or seller has the power to influence prices.
Short Run
A period in economics during which some factors of production or inputs are fixed in quantity and cannot be changed.
Industry
A distinct group of productive or service businesses that share similar characteristics, processes, or goods.
- Comprehend how the introduction or withdrawal from the market affects supply, demand, and prices in the long term.
Verified Answer
Learning Objectives
- Comprehend how the introduction or withdrawal from the market affects supply, demand, and prices in the long term.
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