A. Since our focus is on the decision of whether or not to exit, we will assume

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A. Since our focus is on the decision of whether or not to exit, we will assume that each firm i has fixed capacity k i

at which it produces output in any period in which it is still in business; that is, if a firm i produces, it produces x 5 ki

. Since L is larger than S, we assume k L . k S

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Microeconomics An Intuitive Approach With Calculus

ISBN: 9781337335652,9781337027632

2nd Edition

Authors: Thomas Nechyba

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Question Posted: Nov 06, 2024 06:01 AM

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A. Since our focus is on the decision of whether or not to exit, we will assume

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Microeconomics An Intuitive Approach With Calculus

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