Answer to Question #244703 in Microeconomics for eddyboono

Question #244703

explain what happens in short run and long run under perfectly competitive market structure


1
Expert's answer
2021-09-30T15:49:44-0400

An increase in demand in a perfectly competitive market in long-run equilibrium generates economic profit in the short run and induces entry in the long run; a decrease in demand generates economic losses in the short run and forces some firms to exit the industry in the long run.


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