In the transition from the short run to the long run, the number of firms in a competitive industry is
A)fixed.
B)increasing at a constant rate.
C)decreasing.
D)able to adjust to market conditions.

Question

Quizplus · Accepted Answer

In the long run, firms have the flexibility to enter or exit the market based on market conditions. Therefore, the number of firms in a competitive industry is able to adjust to market conditions in the long run.

In the Transition from the Short Run to the Long