Discuss the following statement: In a perfectly competitive market, in the long run consumers benefit from reductions

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Discuss the following statement: “In a perfectly competitive market, in the long run consumers benefit from reductions in costs, but firms don’t.” Don’t firms also benefit from cost reductions because they are able to earn larger profits?

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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Question Posted: Aug 23, 2019 11:37 AM

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Discuss the following statement: In a perfectly competitive market, in the long run consumers benefit from reductions

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In perfectly competitive markets firms may temporarily earn greater profit...View the full answer

Economics

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