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18-03-2020
Business

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A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose demand in this market decreases.
Which of the following will happen as the market leaves and then returns to long-run equilibrium? Select all that apply.

1. Individual firms' profit-maximizing output will decrease in the long-run.
2. Firms will enter into the market in the long run.
3. Market quantity will decrease in the long-run.
4. Individual firms' profit-maximizing output will decrease in the short-run.
5. Firms will exit the market in the long run.
6. Market price will decrease in the long-run.
7. Market quantity will remain the same in the long-run.
8. Market price will decrease in the short-run.

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18-03-2020

Answer:

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