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  3. Study Set
    Microeconomics Theory with Applications
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    Exam 8: The Theory of Perfect Competition
  5. Question
    If Each Firm Is Initially Earning Positive Profits in a Perfectly
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If Each Firm Is Initially Earning Positive Profits in a Perfectly

Question 94

Question 94

True/False

If each firm is initially earning positive profits in a perfectly competitive industry, then there will be entry of new firms, price will fall, and the output of each firm will fall in the long- run equilibrium.

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