Question
Consider a perfectly competitive industry. (a) Explain using words and a fully-labelled diagram why a firm may continue to operate in the short-run if it
Consider a perfectly competitive industry.
(a) Explain using words and a fully-labelled diagram why a firm may continue to operate in the short-run if it is making an economic loss.
[7 marks]
(b) Explain in words what will happen in the long-run to market supply and/or demand, equilibrium price and quantity if many firms are making economic profits. (3 marks)
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Environmental Economics and Management Theory, Policy and Applications
Authors: Scott J. Callan, Janet M. Thomas
6th edition
1111826673, 1111826676, 1439080634, 1439080631, 9781285528540 , 978-1111826673
