If the demand decreases in a perfectly competitive market, firms will likely:
A. exit the market in hopes of capturing profits elsewhere.
B. experience negative profits in the short run.
C. experience zero profits in the long run.
D. All of these are true.
Answer: D
Economics
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A) demand; market demand B) supply; demand C) supply; market supply D) demand; supply
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Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Economics