f price is less than average cost under pure competition, ____ firms will exit the industry, supply will ____, and price will be driven ____. A. more; decrease; down. B. more; increase; down. C. more; decrease; up. D. fewer; increase; up.

f price is less than average cost under pure competition, firms will exit the industry, supply will , and price will be driven . A. more; decrease; down. B. more; increase; down. C. more; decrease; up. D. fewer; increase; up.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 8SCQ: A market in perfect competition is in long-run equilibrium. What happens to the market if labor...

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Question

If price is less than average cost under pure competition, ____ firms will exit the industry, supply will ____, and price will be driven ____.

	A.	more; decrease; down.
	B.	more; increase; down.
	C.	more; decrease; up.
	D.	fewer; increase; up.

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