1.

Suppose the price at which equilibrium is attained above the minimum average cost of the firms constituting the market. Now, if we allow for free entry and exit of firms, how will the market price adjust to it?

Answer»

Suppose the price at which equilibrium is attained above the minimum average cost of the firms constituting the market. Now, if we allow for free entry and exit of firms, how will the market price adjust to it?



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