Business
Business, 05.03.2020 02:21, hrcatena

Suppose a competitive market is comprised of first that face identical cost curves. The firms experience an increase in demand that results in positive profits for the firms. Which of the following events are then most likely to occur?

i. New firms will enter the market
ii. In the short run, price will rise; in the long run, price will rise further.
iii. In the long run, all firms will be producing at their efficient scale

answer
Answers: 3

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