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Question
Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand decreases from D0 to D1, output in the market will:
A. fall to Q3 in the long run if this is a decreasing-cost industry.
B. fall to Q3 in the long run if this is a constant-cost industry.
C. fall to Q3 in the long run if this is an increasing-cost industry.
D. return to Q1 in the long run.
Answer
This answer is hidden. It contains 66 characters.
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