Top Hat Library Resources MyBib- Citation ma.. 25 Wells Fargo - Banki. Free Plagiarism Che. 0 gmail American | Prom Consider a perfectly competitive constant cost market in long run equilibrium as illustrated below. What happens to market price initially as a result of a reduction in demand? (hint: you may want to draw these graphs on a piece of paper as you answer these questions). X. X. Firm Market market price falls market price increases market price remains constant It is not possible to predict market price changes WIt is not possible to predict market price changes Question 27 1 / 1 pts Consider again the competitive market illustrated in the previous question. After the demand change, what will happen to the representative firm's profits? Profits will increase Profits will become negative Profits are not predictable Profits will remain the same 0 / 1 pts Incorrect Question 28 W Q SearchProfits will remain the same Incorrect Question 28 0 / 1 pts Consider again the perfectly competitive market from the previous two questions. As a result of the answers to those questions, we would predict no prediction can possibly be made firms will reduce their average costs by learning more rapidly new firms would enter the market to take advantage of reduced production costs some firms will exit the market Question 29 1 / 1 pts Q Search W