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If the supply curve shifts to the right and the demand curve shifts to the right by an equal amount proportionately, what will happen to equilibrium price?
1. Price will fall to zero ($0).
2. Price will decrease dramatically.
3. Price will increase dramatically.
4. Price will remain approximately the same.
Assume that the price of silk ties in a perfectly competitive market is $17 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 8 9 10 Total Cost 17 24 33 44 57 72 89 108 129 152 177
1 tell how they combine to insure that in the long run a firm in a perfectly compitive industry make zero profit and is
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