Assume that Firm A currently operates in a perfectly competitive market with positive profits. In the...
- Assume that Firm A currently operates in a perfectly competitive market with positive profits. In the long run, there is inflow of new firms causing the total market supply to ___. Meanwhile, Firm A will ___ its output in response to decrease in market price.
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Increase; increase |
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Increase; decrease |
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Decrease; decrease |
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Decrease; increase |
Homework Answers
Answer : Option Bis correct. When form A is in perfect competition, than total market supply to increasing at fast phase where as the total output firm A decrease when the price has been decreased.
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