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Q. 6. Draw graphs showing a perfectly competitive firm and industry in long run equilibrium. a) Suppose that there is a decrease in demand for
Q. 6. Draw graphs showing a perfectly competitive firm and industry in long run equilibrium. a) Suppose that there is a decrease in demand for this product. Show by graph and explain the short-run adjustment process for both the firm and the industry. b) Show by graph and explain the long-run adjustment process for both the firm and the industry. What will happen to the number of firms in the long run equilibrium
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