Multiple Choice
If firms are losing money in a purely competitive industry, then the long-run adjustments in this situation will cause the market supply to
A) increase, and consequently the representative firm's profits will increase.
B) decrease, and consequently the representative firm's profits will increase.
C) increase, and consequently the representative firm's profits will decrease.
D) decrease, and consequently the representative firm's profits will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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