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With appropriate examples, define short run and long run. One of the fundamental assumptions of perfect competition is free entry and exit of firms. With

  1. With appropriate examples, define short run and long run.
  2. One of the fundamental assumptions of perfect competition is free entry and exit of firms. With an example, explain how this assumption leads to all firms under perfect competition making normal profit in the long run. You can receive 2 bonus points for correct graphical analysis.

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