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Business, 02.12.2019 22:31 neonbluefaith

The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. if all firms only earn a normal profit in the long run, firms will develop new products or lower-cost production methods because they can eliminate competition. improve their management and earn an economic profit in the long run. innovate and possibly earn a normal profit in the short run. innovate and possibly earn an economic profit in the short run.

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