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g. Suppose that the government wants to support chair production, and decides to assign a lump-sum grant to each firm Will this policy shift the

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g. Suppose that the government wants to support chair production, and decides to assign a lump-sum grant to each firm Will this policy shift the marginal cost curve of the firms in the industry? Will the market supply be affected in the short run, when firms cannot enter the industry? What will happen to the market supply in the long run? What will be the effect on the long-run price and on the long-run optimal output for the representative firm

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