Assume firms in the short run are earning above-normal profits. Explain what will happen to these profits

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Assume firms in the short run are earning above-normal profits. Explain what will happen to these profits in the long run for the following markets:
a. Pure monopoly
b. Oligopoly
c. Monopolistic competition
d. Perfect competition

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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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Question Posted: Jun 20, 2016 12:34 AM

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Assume firms in the short run are earning above-normal profits. Explain what will happen to these profits

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a In a pure monopoly no one else can enter the market Thus the m...View the full answer

Managerial Economics

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