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Suppose Colonel Mustard's Kitchen Shoppe operates in a perfectly competitive market and is producing its profit-maximizing level of knives. Suppose further that at this level
Suppose Colonel Mustard's Kitchen Shoppe operates in a perfectly competitive market and is producing its profit-maximizing level of knives. Suppose further that at this level of production, Mustard's average total cost is $50, his average variable cost is $35, and his price is $60 per knife. Over time, the number of knives produced by individual firms operating in the market will _____, everything else held constant
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