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Suppose that a perfectly competitive industry is in long-run equilibrium. Then the price of a complementary...

Suppose that a perfectly competitive industry is in long-run equilibrium. Then the price of a complementary good decreases. Use two graphs, one for the firm, and one for the industry (and words) to explain what will happen in the short run, and then the long run, to: a. The market demand curve? b. The market supply curve? c. Market price? d. Market output? e. Representative firm output? f. Representative firm profit?

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Rahul Sunny answered 1 year ago
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