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***Using this table and graph I need help answering these two questions*** Assuming that the firm is operating in long-run equilibrium, how would they respond
***Using this table and graph I need help answering these two questions***
- Assuming that the firm is operating in long-run equilibrium, how would they respond to a shift of market demand that drove equilibrium price up by 20? Referring to your diagram, explain, a) their short-run production decision and b) their long-run choice to build a copy of their existing plant (or not).
- How would long-run behavior be affected if the increase in output demand forced the wage rate up 50? Numeric answer and explanation required.
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