A perfectly competitive firm that is maximizing profits will experience which of the following price changes in response to an increase in variable costs? In the short run, the firm’s price will: a. stay the same.b. increase.c. decrease.d. decrease and then increase in the long run.e. increase and then decrease in the long run.
A perfectly competitive firm that is maximizing profits will experience which of the following price changes in response to an increase in variable costs? In the short run, the firm’s price will: a. stay the same.b. increase.c. decrease.d. decrease and then increase in the long run.e. increase and then decrease in the long run.
Chapter9: Perfect Competition
Section9.3: Perfect Competition In The Long Run
Problem 3ST
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A
a. stay the same.
b. increase.
c. decrease.
d. decrease and then increase in the long run.
e. increase and then decrease in the long run.
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