Question

In the long run, assuming that market demand stays the same, if firms in a competitive industry expand, then the product price will tend to fall as a result.

Answer 1

Answer:

True

Explanation:

In Microeconomics, there is a correlation between offer and demand. If the market demand stays the same, in a competitive industry expanding its demand other suppliers will come into the game.

So, in the long run. Prices will end up to fall as a result, until it stabilizes on average.