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see image 1. 2. In a market with constant costs, firms are making positive profit. In the long run O Firms will exit the market,
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In a market with constant costs, firms are making positive profit. In the long run O Firms will exit the market, driving down the price and reducing profits O We don't know what will happen because we don't know about profits in other markets O New firms will enter the market, driving down the price and reducing profitsThe market supply curve is found by O Summing the marginal cost curves for each rm 0 Summing the total cost curves for each rm 0 Summing the portion of the marginal cost curve that is above the average variable cost curve for each rm 0 Summing the average cost curves for each rm The market demand curve is found by O Multiplying the market price by the number of consumers 0 Taking the sum of each individual consumer's Marshallian demand function 0 Multiplying Marshallian demand by the number of consumers O Dividing the total income in the economy by the price of each good A market demand curve for x is given by Xd = 100 - 20px. The market supply curve is Xs = 5px. The equilibrium price in this market is 0 4 0 6 0 8 O 2Step by Step Solution
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