8-05

in a perfectly competitive market as a result of a decrease in demand ___ in the long run

some firms are forced out of business

if firms under perfect competition earn positive economic profits in the short run which of the following will occur in the long run

some firms will enter the industry increasing the market supply and driving down market price until economic profits are eliminated and there is no additional motive for entry

which of the following is true of the long-run equilibrium for firms and an industry in perfect competition?

Firms produce output where price equals marginal cost, which also corresponds to the point where the marginal cost curve intersects the long-run average cost curve.

a short-run loss is likely to

force some seller to leave the industry and shift the market supply curve leftward

if a perfectly competitive firm experiences a permanent increase in demand

market supply increases but the equilibrium price remains the same in the long run

if a typical perfectly competitive firm earns an economic profit in the short run

new firms enter the market in the long run

in a perfectly competitive market a firm operating in the long run is forced by competition to adjust its scale of operation

until average cost is minimized.

in the long run a perfectly competitive firm will earn ____ profits

zero economic