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The graph shows a perfectly competitive market that was in a long-run equilibrium on demand curve Do, Due to a permanent change in demand to D, the price in the market will causing existing firms to which means that the market. O A. increase; earn a smaller economic profit; new firms will enter O B. decrease; earn a larger economic profit; new firms will enter OC. decrease; incur an economic loss; some firms will exit D. increase; earn a larger economic profit; some firms will exit O E. decrease; earn a smaller economic profit; new firms will enter

The graph shows a perfectly competitive market that was in a long-run equilibrium on demand curve Do, Due to a permanent change in demand to D, the price in the market will causing existing firms to which means that the market. O A. increase; earn a smaller economic profit; new firms will enter O B. decrease; earn a larger economic profit; new firms will enter OC. decrease; incur an economic loss; some firms will exit D. increase; earn a larger economic profit; some firms will exit O E. decrease; earn a smaller economic profit; new firms will enter

Microeconomics
Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter9: Perfect Competition
Section: Chapter Questions
Problem 13QP
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The graph shows a perfectly competitive market that was in a long-run equilibrium on demand curve Do, Due to a permanent change in demand to D, the price in the market will causing existing firms to which means that the market. O A. increase; earn a smaller economic profit; new firms will enter O B. decrease; earn a larger economic profit; new firms will enter OC. decrease; incur an economic loss; some firms will exit D. increase; earn a larger economic profit; some firms will exit O E. decrease; earn a smaller economic profit; new firms will enter
Transcribed Image Text:The graph shows a perfectly competitive market that was in a long-run equilibrium on demand curve Do, Due to a permanent change in demand to D, the price in the market will causing existing firms to which means that the market. O A. increase; earn a smaller economic profit; new firms will enter O B. decrease; earn a larger economic profit; new firms will enter OC. decrease; incur an economic loss; some firms will exit D. increase; earn a larger economic profit; some firms will exit O E. decrease; earn a smaller economic profit; new firms will enter
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