If existing competitive firms are incurring economic losses, which of the following will happen as the market moves toward long-run equilibrium, ceteris paribus? Answers:A. Lower equilibrium price and greater equilibrium quantity. B. Higher equilibrium price and smaller equilibrium quantity. C.Lower equilibrium price and smaller equilibrium quantity. D. Higher equilibrium price and greater equilibrium quantity.

Economic loss: It is the financial loss in which property damage is excluded.

Answered: If existing competitive firms are…

If existing competitive firms are incurring economic losses, which of the following will happen as the market moves toward long-run equilibrium, ceteris paribus?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 14QP

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Question

If existing competitive firms are incurring economic losses, which of the following will happen as the market moves toward long-run equilibrium, ceteris paribus?


Answers:	A. Lower equilibrium price and greater equilibrium quantity.
	B. Higher equilibrium price and smaller equilibrium quantity.
	C. Lower equilibrium price and smaller equilibrium quantity.
	D. Higher equilibrium price and greater equilibrium quantity.

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