In the perfect competition market structure if firm's are earning a loss which of the following will occur? O firms will exit the market and price will rise. firms will enter the market and price will fall. O firms will enter the market and price will rise. O firms will exit the market and price will fall.

In the perfect competition market structure if firm's are earning a loss which of the following will occur? O firms will exit the market and price will rise. firms will enter the market and price will fall. O firms will enter the market and price will rise. O firms will exit the market and price will fall.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 9MC

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