If firms in a competitive price-searcher market are incurring economic losses, which of the following scenarios would best describe the change existing firms (who are able to stay in the market) would face as the market adjusts to long-run equilibrium?
a. An increase in demand for each firm and lower prices.
b. A decrease in demand for each firm and lower prices.
c. An increase in demand for each firm and higher prices.
d. A decrease in demand for each firm and higher prices.
C
Economics
You might also like to view...
Edward lives in England, and he makes a donation of $100,000 dollars to Food for the Poor, a charitable organization in the United States. Edward's donation will be counted as a(n) ________ in England's current account
A) export B) factor payment C) transfer payment D) import
Economics
Refer to the information. Average total cost is:
Answer the question on the basis of the following information:
Economics