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Suppose a farmer participates in acompetitive market, and has a production process that is typical of the industry. If the farmer's profits are negative, what
Suppose a farmer participates in acompetitive market, and has a production process that is typical of the industry. If the farmer's profits are negative, what adjustments might you expect them to make in the long run? What if their profits are positive?
With this in mind, discuss the idea of long run market dynamics/adjustments and the condition forlong run equilibrium.
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