Answer to Question #308369 in Microeconomics for Afnan

Question #308369

Consider a market with freedom of entry and exit of firms. Suppose that all the firms are identical. The market demand curve


1
Expert's answer
2022-03-09T10:31:14-0500

If firms earn high profits in an industry then new firms enter, forcing the market price down as the SR industry supply curve shifts out.





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