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Suppose that the pen-making industry is perfectly competitive.Also suppose that each current firm and any potential firms that might enter the industry all have identical
Suppose that the pen-making industry is perfectly competitive.Also suppose that each current firm and any potential firms that might enter the industry all have identical cost curves, with minimum ATC = $1.25 per pen.If the market equilibrium price of pens is currently $1.50, what would you expect it to be in the long run?
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