Question
Suppose that the owner and CEO of a firm that operates in a PERFECTLY COMPETITIVE market environment comes to see you for help. She has
Suppose that the owner and CEO of a firm that operates in aPERFECTLY COMPETITIVEmarket environment comes to see you for help. She has a few questions to ask you as the company Economist. This question isi)
(i)"I was discussing the firm with the Company Economist last evening and she told me the firm was earning Extra-Ordinary Profit! I said that was good, but she said that was bad in the long run because of the "freedom of entry and exit" in a perfectly competitive market. Can youCarefully and Completely explainto me what this means and HOW and WHY it will impact my firm please?
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Macroeconomics Principles and Applications
Authors: Robert e. hall, marc Lieberman
5th edition
1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238
