Suppose Each Firm's Long-Run Average Cost of Production Does Not

Multiple Choice

Suppose each firm's long-run average cost of production does not vary with the entry of new firms in a perfectly competitive industry and a long-run adjustment results in a smaller industry output but leaves price unchanged.Which of the following is likely to be true in this case?

A) The market demand curve did not shift.
B) The market demand curve shifted to the left, and the market supply curve shifted to the right.
C) The market supply curve shifted to the left, and the market demand curve shifted to the right.
D) Both market supply and demand increased, but supply increased more than demand.
E) The industry is a constant-cost industry.