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What are the conclusions about the cost of production and efficiency in the long-run equilibrium of a perfectly competitive industry?
Three conclusions regarding the cost of production and efficiency into the long-run equilibrium of a perfectly competitive industry as follows:
a. Within a perfectly competitive industry into equilibrium, the value of marginal cost is similar for all firms.
b. In a perfectly competitive industry along with free entry and exit, every firm will have zero economic profits into long- run equilibrium.
c. The long-run market equilibrium of a perfectly competitive industry is effective: no equally beneficial transactions go unexploited.
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TC=100+0.15Q, Qu=1000-10Pu
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Q. Explain Mark-up pricing? In addition to using above methods to conclude a firm's optimal level of output, a firm can also set price to maximise profit. Optimal markup rules
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