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Question $34(1$ point$)$

Suppose that the market for pet goldfish is a perfectly competitive market and is in short$-$run equilibrium with price below average total cost. Which one of the following is not a prediction of the long$-$run consequences of such a situation?

Market output will increase.

Firms will exit the market.

Price will rise.

Economic profit will be zero.

The output of each existing firm will increase.