If there is a decrease in demand for a product in a purely


If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is:

1. Greater than its marginal cost

2. Equal to its marginal cost

3. Greater than its average cost

4. Less than its marginal cost

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Business Economics: If there is a decrease in demand for a product in a purely
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