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  3. Study Set
    Principles of Microeconomics
  4. Exam
    Exam 11: Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition
  5. Question
    When Price Falls in a Perfectly Competitive Industry, Each Firm
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When Price Falls in a Perfectly Competitive Industry, Each Firm

Question 148

Question 148

Multiple Choice

When price falls in a perfectly competitive industry, each firm will


A) sell more output
B) sell the same amount of output but earn less economic profit
C) sell less output
D) raise its price
E) shut down production until price regains its former level

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