Under perfect competition, if some firms are taking losses in the short run, in the long run

A. equilibrium price will rise until all firms are earning zero economic profits.
B. those firms will cut back their output until they get to the level at which marginal cost equals price.
C. firms will leave the industry until all firms are making a profit.
D. those firms will earn losses until demand increases.


A. equilibrium price will rise until all firms are earning zero economic profits.

Economics

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Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase health insurance?

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According to Porter's Five Competitive Forces Model, which kinds of products are most likely to limit the ability of firms in an industry to raise prices?

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Suppose the required reserve ratio is 20 percent. If banks are conservative and choose not to loan all of their excess reserves, the real-world deposit multiplier is

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Economics