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You earn your MBA and decide to purchase a nail and bolt manufacturing company. Research shows the firm operates under characteristics similar to pure competition.
You earn your MBA and decide to purchase a nail and bolt manufacturing company. Research shows the firm operates under characteristics similar to pure competition. You are currently operating with a short-run economic profit. You are considering expanding through investment in increased capacity. What do you expect to happen to economic profit in the long run for your business? Why? Should you expand production capacity for the long run?
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