Assume demand is D1 and the industry is in long-run equilibrium. How many firms are in the industry? When demand shifts from D1 to D2, the price changes ["less", "more"] in the short run than in the long run, and quantity changes ["more", "less"] in the short run than in the long run: Note:-
Assume demand is D1 and the industry is in long-run equilibrium. How many firms are in the industry? When demand shifts from D1 to D2, the price changes ["less", "more"] in the short run than in the long run, and quantity changes ["more", "less"] in the short run than in the long run: Note:-
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text:$
10
9
8
7
6
5
4
3
2
1
0
Firm Cost Structure
0 1 2
3
4
5
Quantity
6
7
MC
ATC
AVC
8
9
10
$
10
9
8
7
6
5
4
3
2
1
0
0
D1
Industry Demand
D2
100 200 300 400 500 600 700 800 900 1000
Industry Quantity
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