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9 December, 10:44

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.

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  1. 9 December, 11:53
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    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.
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