If firms in a perfectly competitive industry are earning losses, we would expect that in the long runthe market demand curve for the product will shift to the left causing industry output to fall.the market supply curve for the product will shift to the left causing industry output to fall.the market supply curve for the product will shift to the right causing industry output to rise.the market demand curve for the product will shift to the right causing industry output to rise. there will be no change in industry output as long as marginal revenue equals marginal cost for the individual firms.

Answered: If firms in a perfectly competitive…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 12SQP

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If firms in a perfectly competitive industry are earning losses, we would expect that in the long run

the market demand curve for the product will shift to the left causing industry output to fall.
the market supply curve for the product will shift to the left causing industry output to fall.
the market supply curve for the product will shift to the right causing industry output to rise.
the market demand curve for the product will shift to the right causing industry output to rise.
there will be no change in industry output as long as marginal revenue equals marginal cost for the individual firms.

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