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Explain how the price system eliminates a surplus.
The meaning of surplus is that quantity demanded is less as compared to the quantity supplied. This will lead to downward pressure on price. Since price falls, quantity demanded rises and quantity supplied falls. This will carry on until quantity demanded is equal to quantity supplied.
#question.contrast the long run equilibrium position of monopolistic competition firm and oligopoly.
explain the difference between traditional theory and modern theory of cost
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