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When there are external economies of scale in an industry, an increase in the size of the market will:
A) increase the number of firms and lower the price per unit.
B) increase the number of firms and raise the price per unit.
C) decrease the number of firms and raise the price per unit.
D) decrease the number of firms and lower the price per unit.
E) not affect the number of firms, but will lower the price per unit

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Divya Singh
Divya SinghLv10
30 Sep 2020

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4 In a perfectly competitive industry that is in a long-run equilibrium there is a permanent decrease in demand. Initially, in the short-run, this demand decrease brings a lower market price, A. economic profit to firms and entry of firms into the industry. B. economic loss to firms and exit of firms from the industry. C. normal profit to firms and no change in the number of firms in the industry. D. economic profit to firms and exit of firms from the industry. E. economic loss to firms and entry of firms into the industry.

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