competitive constant cost industryr is in longirun equilibrium
A perfectly competitive constant cost industry is in long-run equilibrium. Due to a change in tastes and preferences, there is an increase in demand. Which of the following best describes the effect on the industry? The price will ______
-Select answer A, B, C, or D.
ATTACHMENT PREVIEW Download attachment
![4-1 10:25.png](https://coursehero.s3.amazonaws.com/qattachments_1d3e1526b319a8ed997d82fafb0c657101c354a4_th.jpg?X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAIAYW2E6VOLDTI35A%2F20190626%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Date=20190626T104909Z&X-Amz-SignedHeaders=host&X-Amz-Expires=60&X-Amz-Signature=16113ae100a747cfc6bb0fd7242ecf88be6887f155f10665377c604e993a207a)
4-1 10:25.png
Aperfectiy competitive constant cost industryr is in longirun equilibrium. Due to a change in tastes and preferences. there is an increase in demand. Which ofthe following best describes the effect on the industry? The price will 0 A. increase, firms will produce more, profits will increase, and more firms will enter until profit returns to zero.
0 B. decrease. firms will produce less. profits will be below zerol and fins will exit until profit retums to zero.
0 C. increase, firms will produce less, profits will be below zero, and firms will enter until profit retums to zero.
0 D. increase, firms will produce more, profits will be below zero, and firms will exit until profit returns to zero.
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"
![](https://sp-ao.shortpixel.ai/client/to_auto,q_glossy,ret_img,w_320,h_80/https://coursesolver.com/wp-content/uploads/2019/10/order_now.png)