1
answer
0
watching
238
views
28 Sep 2019
Assume that in a purely competitive industry: (1) the entry and exodus of firms are the only long-run adjustments; (2) firms in the industry have identical cost curves; and (3) the industry is a constant cost industry. Explain how long-run equilibrium (p = minimum ATC) is eventually achieved in the industry when there are initially economic profits. (Answer in 2-4 sentences)
Assume that in a purely competitive industry: (1) the entry and exodus of firms are the only long-run adjustments; (2) firms in the industry have identical cost curves; and (3) the industry is a constant cost industry. Explain how long-run equilibrium (p = minimum ATC) is eventually achieved in the industry when there are initially economic profits. (Answer in 2-4 sentences)
Vaishali YadavLv10
28 Sep 2019
