If a firm is making negative economic profit in a perfectly competitive output market (as described in chapter 8), this means the average total cost at profit maximizing output is the market price. In the long-run, firms will * the industry until the price is • to the minimum average total cost.
If a firm is making negative economic profit in a perfectly competitive output market (as described in chapter 8), this means the average total cost at profit maximizing output is the market price. In the long-run, firms will * the industry until the price is • to the minimum average total cost.
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.2P
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