in-a-perfectly-competitive-market-how-does-the-long-run-supply-curve-ensure-that

Question

In a perfectly competitive market, how does the long-run supply curve ensure that supply meets demand at equilibrium prices?

Accepted Answer

Firms enter or exit the market to adjust supply to meet demand.

Answer

Firms only produce at maximum capacity.

Answer

Firms ignore changes in demand.

Answer

Firms produce at a loss to meet demand.