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Number of firms in the industry

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1) For a perfectly competitive firm, if economic profits exist, how will this impact the number of firms in the industry? If economic losses exist? What will long-run economic profits be for the perfectly competitive firm?

2) Explain the difference between the individual firm demand curve for a perfectly competitive firm and the individual firm demand curve for a monopolist. What is the difference between their market demand curves?

3) Explain how a monopolist can increase profits by price discriminating. What are the conditions necessary for price discrimination?

Reference no: EM131406885

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