Why do short-run profits in a perfectly competitive industry

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Differentiate between a change in quantity demanded and a change in demand.

In the three months before a $1 per pack cigarette tax took effect in Alaska, smokers bought 175 million more cigarettes than during the same period a year earlier. What explains this behavior by consumers?

Why do short-run profits in a perfectly competitive industry tend to disappear over time?

Reference no: EM13204873

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