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