A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000. The prevailing market price is $48. Assuming that this firm continues to produce in the long run, what happens to output level in the long run?
The firm's output increases.
The firm produces the same output level.
The firm's output falls.
There is insufficient information to answer the question.
The firm's output increases.