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Why would firm stay in business if making zero profit

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Reference no: EM13245593

a. Explain the relationship between the law of diminishing marginal returns and the shape of a firm's marginal cost curve?

b. The long-run equilibrium for a perfectly competitive industry occurs when the firms are earning economic profits of zero. Why would firm stay in business if it is making zero economic profits?

c. Should governments outlaw monopolistic competition in the interests of efficiency? Why or why not?

Reference no: EM13245593

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