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Suppose firms are free to enter/exit. What is the equilibrium number of firms in this market?Eg: at what value of n ensures that each firms

  1. Suppose firms are free to enter/exit. What is the equilibrium number of firms in this market?Eg: at what value of n ensures that each firms has zero profits.
  2. Show that social surplus is at a maximum given free entry/exit.Why is this the case?

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