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2 votes
Suppose that initially the price is $50 in a perfectly competitive market. firms are making zero economic profits. then the market demand shrinks permanently and some firms leave the industry and the industry returns back to a long-run equilibrium. what will be the new equilibrium price, assuming cost conditions in the industry remain constant? "

asked
User Amina
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1 Answer

1 vote
The new equilibrium price would be $50
answered
User Al Mahdi
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8.1k points
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