Assume the watermelon industry is perfectly competitive and in long-run equilibrium with a market price of $10. If the demand for watermelons increases in this decreasing-cost industry, long-run equilibrium will be reestablished at a price
A. less than $10.
B. equal to $10.
C. greater than $10.
D. either greater than or less than $10, depending on the number of firms that enter the industry.
Answer: A
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