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With No Barriers to Entry or Exit and When Firms

Question 89

Multiple Choice

With no barriers to entry or exit and when firms in a market are operating at a loss,we can expect other firms to exit,causing the ________ curve to shift to the ________ and making the equilibrium price ________ and the equilibrium quantity ________.


A) demand; right; increase; increase
B) demand; left; decrease; decrease
C) supply; right; decrease; increase
D) supply; left; increase; increase
E) supply; left; increase; decrease

Correct Answer:

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