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Short essay: h} Suppose that the defense contracting business is a perfectly competitive. In the long run equilibrium. the price just covers average production cost

Short essay:

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h} Suppose that the defense contracting business is a perfectly competitive. In the long run equilibrium. the price just covers average production cost and every contractor makes zero profit. Thus. if the price goes down. even little bit. due to a decrease in government defense spending. all contractors will go out of business. Discuss this statement. (10 marks}

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