Describe what happens to output, price, and economic profit in the short run and in the long

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Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following:
1. An increase in demand.
2. A decrease in demand.
3. The adoption of a new technology that lowers production costs.

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Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

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Question Posted: Dec 15, 2015 07:16 AM

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Describe what happens to output, price, and economic profit in the short run and in the long

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Step by Step Answer:

1 An increase in demand increases the market quantity and the market price rises above ATC for each firm In the short run firms in the market make an ...View the full answer

Microeconomics

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