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Assume That All Firms in This Industry Have Identical Cost

Question 118

Multiple Choice

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. If the market supply curve is given by S3, then we would expect firms to: A) exit the market in the long run. B) enter the market in the long run. C) neither exit nor enter the market in the long run. D) shut down in the short run. If the market supply curve is given by S3, then we would expect firms to:


A) exit the market in the long run.
B) enter the market in the long run.
C) neither exit nor enter the market in the long run.
D) shut down in the short run.

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