Suppose the costs of production in a market fall by $1 per unit at every output level.

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Suppose the costs of production in a market fall by $1 per unit at every output level. If the number of firms is fixed in the short run but not in the long run, how would such a change affect the market equilibrium in the short and long run?

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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Mar 18, 2016 04:52 AM

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Suppose the costs of production in a market fall by $1 per unit at every output level.

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In the short run Neither equilibrium price nor equilibri...View the full answer

Microeconomics

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