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Assume that the noodle industry is perfectly competitive and in long run equilibrium. Explain why, in the absence of a patent, a technical innovation invented
Assume that the noodle industry is perfectly competitive and in long run equilibrium.
Explain why, in the absence of a patent, a technical innovation invented and pioneered in one noodle factory will cause the supply curve for the entire noodle industry to shift to the right.
What will finally halt the rightward shift?
How will your answers be different if the innovative firm has a patent to protect its innovation?
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