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Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next, assume that the demand
Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next, assume that the demand for peanuts increases in the short run, and the price rises to $4 per pound. If this is a decreasing-cost industry, what price per pound should we expect in the long-run?
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In a decreasingcost industry the average total cost ATC decreases as the industry expands This means ...
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
3rd edition
2901133951482, 1133951481, 978-1133951483
