If the market price is above the perfectly competitive firm's average total cost curve, we expect that in the long run,
A.
the industry contracts as firms exit the market.
B.
the industry expands as firms exit the market.
C.
the industry contracts as firms enter the market.
D.
the industry expands as firms enter the market.
E.
the government seeks to regulate the market to ensure efficient outcomes.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：28
Answer:
D
Knowledge points:
3.3 Long-Run Production Costs
3.6 Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
3.7 Perfect Competition
Solution:
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