Question

Assume that the market for calculators is perfectly competitive and that calculator manufacturers are currently making an economic loss. As the calculator market moves to its long run equilibrium, we should see A. the entry of firms, causing a decrease in supply, an increase in market price, and an increase in losses. B. no change in the industry. Firms will keep producing the same output to minimize losses. c. the entry of firms, causing an increase in supply, a decrease in market price, and a decrease in losses D. the exit of firms, causing an increase in supply, a decrease in market price, and a decrease in losses. E, the exit of firms, causing a decrease in supply, an increase in market price, and a decrease in losses.