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6 Jul 2018

Suppose at present firms in a perfectly competitive market are earning negative economic profits (losses). Explain the process by which this industry will reach long-run equilibrium. What will happen to the output produced by the average firm and the prices charged? Why? What will happen to profit? Some graphs to illustrate your answers may be very useful.

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Jean Keeling
Jean KeelingLv2
6 Jul 2018

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