In Long­run Equilibrium with Trade, Losses from Import

Multiple Choice

In long­run equilibrium with trade, losses from import
Competition will force some firms to ______________,
Increasing demand for the remaining firms' output, which will
Then cause their demand curves to become ______________,
Due to the increased variety of products from
_______________.

A) raise prices; steeper; new firms entering the industry
B) leave the industry; flatter; foreign firms
C) lower prices; more inelastic; new firms entering the industry
D) lay off workers; more elastic; the research and development departments in firms