Business, 20.02.2022 05:00 ineedhelp368
Suppose that initially the price is $20 in a perfect competitive market. Firms are making zero economic profits. then the market demand shrink permanently, some firms leave the industry, and the industry turn to a long-term equilibrium. what will be the new equlibrium price, assuming cost conditions in the industry remain constant?
-$20
-$16
-lower than $20 but exactly price not known without more information
-larger than $20 but exactly price not known without more information
Answers: 1
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Suppose that initially the price is $20 in a perfect competitive market. Firms are making zero econo...
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