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What Is the Effect of a Permanent Increase in Demand

Question 75

Multiple Choice

What is the effect of a permanent increase in demand in a perfectly competitive market,with no external economies or diseconomies?


A) Market price increases in the long run.
B) Average cost decreases in the long run.
C) Market price decreases in the long run.
D) Average cost increases in the long run.
E) Market price remains constant in the long run.

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