High number of firms producing surplus output

Reference no: EM13686059

Presume a competitive industry has excess supply represented by a high number of firms producing surplus output; as the industry reaches long run equilibrium, what happens to each of the following:

1. Market demand curve

2. Market supply curve

3. The number of firms in the industry

4. The equilibrium or market clearing price

5. Economic profits for firms in the industry

Reference no: EM13686059

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