Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium.

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Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium. Explain how the profit motive could lead to lower market prices.

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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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Question Posted: Sep 21, 2024 06:02 AM

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Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium.

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If a market isin longrun equilibrium and firms have identical co...View the full answer

Microeconomics

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