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MMLU / If the perfectly competitive price is currently above minimum ATC, we can expect…

Problem

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question

If the perfectly competitive price is currently above minimum ATC, we can expect which of the following events in the long run?

choices

  1. Price rises as firms enter the industry.
  2. Market equilibrium quantity rises as firms exit the industry.
  3. Nothing. The industry is currently in long-run equilibrium.
  4. Price falls as firms enter the industry.

subject

high_school_microeconomics

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