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Each firm in a competitive market has a cost function TC 102q and there are n 20 firms in the short run. The short-run equilibrium price is p-5 What happens in the long-run equilibrium as

Each firm in a competitive market has a cost function TC() 102q+ and there are n = 20 firms in the short run. The short-run equilibrium price is p-5. What happens in the long-run equilibrium as compared to the short-run equilibrium (a) Does the equilibrium price increase or decrease? Explain (b) Does the number of firms increase or decrease? Explain (c) Does the output of a single firm increase or decrease? Explain (d) Does the total market output increase or decrease? Explain.

May 15 2020 View more View Less

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