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(e) Firms in perfectly competitive markets can earn profits in the long-run after firm entry. (5 points) (f) Consumers optimizing their behavior will equalize the
(e) Firms in perfectly competitive markets can earn profits in the long-run after firm entry. (5 points) (f) Consumers optimizing their behavior will equalize the marginal utility of goods they consume positive amounts of. (5 points) (g) Indifference curves can slope up if changes in income have sufficiently strong impacts on their demand for some goods. (5 points) (h) A tax will induce greater efficiency loss if there is a larger change in the quantity of goods consumed. (5 points)
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