Answered: explain the down-sloping and upsloping…

explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits in the short run but not in the long run?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 7P

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explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits in the short run but not in the long run?

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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