If an Industry Is in Long-Run Competitive Equilibrium and Experiences

Multiple Choice

If an industry is in long-run competitive equilibrium and experiences a decrease in demand, then as a result the equilibrium price will __________, which will cause the representative firm's __________ curve to shift downward and some firms will __________ the industry.

A) rise; marginal cost; enter
B) fall; marginal cost; enter
C) rise; marginal revenue; enter
D) fall; demand; exit
E) fall; marginal cost; exit