Question

29) If firms in a competitive industry are suffering economic losses, then one would expect that in the long run A) the demand curve for the product will shift to the left, causing equilibrium output and price to decline. B) there would be no change in the number of firms in the industry as long as firms are covering their average variable costs. C) the supply curve for the product will shift to the left as firms leave the industry, causing industry output to fall and price to rise. D) the supply curve for the product will shift to the right as individual firms lower their prices to increase their sales. E) each firm would raise its price until it was breaking even.