In a perfectly competitive farm market with economic losses, farmers will
A. Exit until accounting profits are zero.
B. Exit until profits are normal.
C. Buy more farmland and expand until profits are normal.
D. Not enter or exit based on economic profits.
Answer: B
Economics
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If market demand decreases and market supply increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. indeterminate; decrease b. indeterminate; increase c. decrease; indeterminate d. increase; indeterminate
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