Business
Business, 09.07.2021 16:10, piyonax

Suppose a competitive industry faces an increase in demand​ (i. e., the demand curve shifts​ upward). What are the steps by which a competitive market ensures increased​ output? Will your answer change if the government imposes a price​ ceiling? If demand​ increases, then output will increase with competition because A. price will​ decrease, decreasing​ profit, prompting existing firms to stop producing output. B. average cost will​ decrease, increasing​ profit, prompting . C. price will become less than marginal​ cost, prompting . D. price will​ increase, increasing​ profit, prompting . E. price will​ increase, increasing​ profit, prompting .

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Suppose a competitive industry faces an increase in demand​ (i. e., the demand curve shifts​ upward)...

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