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Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium.
a. How do you know that the industry is in longrun equilibrium?
b. Suppose that there is an increase in demand for this product. Show and explain the short-run adjustment process for both the firm and the industry.
c. Show and explain the long-run adjustment process for both the firm and the industry. What will happen to the number of firms in the new long-run equilibrium?
question 1 the economic surplus of a particular action is answer the value of the action the cost of the action
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We live in an environment characterized by increasing complexity in the legal and regulatory environment as efforts are made to marry concerns about social responsibility with a responsive regulatory environment.
These forecasts for the Internet creating “perfectly competitive” markets were based on the competitive model we have presented in this chapter. Do you think the Internet has helped create more competitive markets or less? Why?
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