When sellers exit a market in which the average seller has losses, what results? A. The...

When sellers exit a market in which the average seller has losses, what results?

A. The market demand shrinks as consumers avoid struggling sellers.

B.The losses shrink or disappear as the market demand is spread over a smaller number of sellers.

C. The sellers that exit avoid the losses that the remaining market sellers continue to suffer.

D. The remaining sellers have higher demand but also face cost curves that shift upward.

Expert Solution

D) The remaining sellers have higher demand but also face cost curves that shift upward.

When sellers exit a market in which the average seller has losses then the remaining sellers have higher demand but also face cost curves that shift upward.

Rahul Sunny answered 2 years ago

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