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In side-by-side diagrams illustrate two perfectly competitive firms in long-run equilibrium where the firms have identical AC but the firm on the right has higher
In side-by-side diagrams illustrate two perfectly competitive firms in long-run equilibrium where the firms have identical AC but the firm on the right has higher fixed costs. Using these diagrams illustrate and explain which firm: left (low fixed costs) or right (high fixed costs) is more likely to survive if the long-run equilibrium is interrupted by a severe recession.
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