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When a perfectly competitive market experiences an increase in demand, the long-run response will be [1] entry by new firms into the market. [2] increased
When a perfectly competitive market experiences an increase in demand, the long-run response
will be
[1] entry by new firms into the market.
[2] increased output by existing firms and higher prices.
[3] an increase in the costs of production.
[4] increased profit margins by firms.
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