The cross-price elasticity of the goods bought

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A particular market structure has the following characteristics: the cross-price elasticity of the goods bought and sold in this market is +3.0, firms must lower price to sell more, and there is relatively easy entry into this market.

Illustrate a firm in this market structure that is making short run economic profits. Specifically identify/label the areas that represent total revenue, total cost, and profit.

Describe and illustrate long run equilibrium in this industry.

Reference no: EM13837793

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