Multiple Choice
Assume that the market for corn is purely competitive. Currently, firms growing corn are suffering economic losses. In the long run, we can expect
A) new firms to enter, causing the market price of corn to fall.
B) new firms to enter, causing the market price of corn to rise.
C) some firms to exit, causing the market price of corn to fall.
D) some firms to exit, causing the market price of corn to rise.
Correct Answer:
Verified
Correct Answer:
Verified
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