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Producers in an industry are making high profits

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Reference no: EM132253404

If producers in an industry are making high profits, then all of the following are true, EXCEPT:

1. More of the good should be produced.

2. Prices will eventually drop as long as there are no barriers to entry.

3. Supply will increase.

4. Fewer firms will enter the market.

Reference no: EM132253404

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