as shown in panel (a). The number of firms adjusts to ensure that all demand is satisfied
at this price. The long-run market supply curve is horizontal at this price,
toughest p90x workout, as shown in
panel (b).
CHAPTER 14 FIRMS IN COMPETITIVE MARKETS 307
average total cost,
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price.
W H Y D O C O M P E T I T I V E F I R M S S TAY I N B U S I N E S S
IF THEY MAKE ZERO PROFIT?
At first,
discount diesel jeans, it might seem odd that competitive firms earn zero profit in the long run.
After all,
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to zero, there might seem to be little reason to stay in business.
To understand the zero-profit condition more fully,
herve leger bandage dress, recall that profit equals to-