The market for a perfectly competitive industry has an equilibrium price of $5 and the minimum average cost for the firms in this market is $3. In the long run, we would expect
A. each firm to produce less output than their current output.
B. the number of firms to fall.
C. each firm’s profits to remain at $2 per unit.
D. each firm’s average cost to rise.
Answer: A
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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