Assume the peanut industry, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If demand for peanuts increases and this industry is a decreasing-cost industry, long-run equilibrium will be reestablished at a price
A. equal to $5.
B. less than $5.
C. greater than $5.
D. either greater than or less than $5, depending on the number of firms that enter the industry.
Answer: B
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a. True b. False
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