Multiple Choice
When market demand increases in a competitive industry,
A) the number of firms increases, causing short-run market supply to increase.
B) firms become less efficient.
C) firms' marginal cost curves shift to the right.
D) economic profits stay at zero because of competition.
E) market price increases, making it possible for ATC curves to shift up.
Correct Answer:
Verified
Correct Answer:
Verified
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