Assume that the market for soybeans is perfectly competitive. Currently, firms growing soybeans are experiencing economic profits. In the long run, we can expect
A. new firms to enter, causing the market price of soybeans to increase.
B. some firms to exit, causing the market price of soybeans to increase.
C. some firms to exit, causing the market price of soybeans to decrease.
D. new firms to enter, causing the market price of soybeans to decrease.
Answer: D
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a. price is equal to marginal revenue. b. price is equal to average revenue. c. price is equal to average variable cost. d. price is equal to the average total cost. e. price is equal to marginal cost.
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a. True b. False Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false