6. Consider two perfectly competitive industries Industry 1 and Industry 2. Each faces identical demand and cost

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6. Consider two perfectly competitive industries—

Industry 1 and Industry 2. Each faces identical demand and cost conditions except that the minimum efficient scale output in Industry 1 is twice that of Industry 2. In a long-run perfectly competitive equilibrium, which industry will have more firms?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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