Suppose that the organic-produce industry is composed of a large number of small firms. In recent
years, these firms have suffered economic losses, and many sellers have left the industry. Economic
theory suggests that these conditions will
a) shift the demand curve outward so that price will rise to the level of production cost.
b) cause the remaining firms to collude so that they can produce more efficiently.
c) cause firms in the organic-produce industry to suffer long-run economic losses.
d) cause the market supply to decline and the price of organic produce to rise.