explain why is the long run market supply curve horizontal in long run in perfect competitive market?How does a competitive firm determine the quantity that maximizes profit?When might a competitive firm shutdown in the short run and exit the market in the long run?

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explain why is the long run market supply curve horizontal in long run in perfect competitive market?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section13.2: Profit Maximization And The Competitive Firm's Supply Curve

Problem 2QQ: How does a competitive firm determine its profit-maximizing level of output? Explain. When does a...

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Question

explain why is the long run market supply curve horizontal in long run in perfect competitive market?
How does a competitive firm determine the quantity that maximizes profit?
When might a competitive firm shutdown in the short run and exit the market in the long run?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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