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Business, 11.08.2021 02:10 nikitakhrabkov123

Suppose that a competitive market is initially in equilibrium. Then demand increases. If entering firms face the same costs as existing firms and sufficient resources are available for entering firms, the long-run market supply curve will be upward sloping. in the long run firms will suffer economic losses, leading them to exit the industry. the number of firms will decrease, and the market will become a monopoly. the long-run market supply curve will be perfectly elastic.

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Suppose that a competitive market is initially in equilibrium. Then demand increases. If entering fi...
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