Suppose a competitive market has a horizontal long- run supply curve and is in long-run equilibrium. If demand decreases, we can be cetain that in the short- run, a. at least some firms will shut down b. price will fall below marginal cost for some firms. c. price will fall below average total cost for some firms. d. at least some firms will enter the industry.

Suppose a competitive market has a horizontal long- run supply curve and is in long-run equilibrium. If demand decreases, we can be cetain that in the short- run, a. at least some firms will shut down b. price will fall below marginal cost for some firms. c. price will fall below average total cost for some firms. d. at least some firms will enter the industry.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 3CQQ

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