Question
Continue your analysis of the calculator industry. Recall the assumptions: the market for calculators is a perfectly competitive industry facing U-shaped ATC, AVC, and MC
Continue your analysis of the calculator industry. Recall the assumptions: the market for calculators is a perfectly competitive industry facing U-shaped ATC, AVC, and MC cost curves. Demand is linear and has some downward slope and the industry is filled with many homogeneous firms. Using a graph that depicts both the market and a representative firm, graphically depict what will happen to theP(price),Q(market output),q(firm output) and(firm profit) when the market moves from the original short run equilibrium with positive profits to anewlong run equilibrium.
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