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Loss firms exit market - PowerPoint PPT Presentation

Long Run: Equilibrium P.C.

Long Run: Equilibrium P.C. Profits and losses are inconsistent with P.C. LR equilibrium are signals to which firm owners respond causing industry supply to shift. causing product prices to change eliminating profits & losses in the long run. Profit = more firms enter and profit disappears

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Loss firms exit market - PowerPoint PPT Presentation

Long Run: Equilibrium P.C.