In Problem, suppose that the city imposes a license fee of $11 per firm. a. In the
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In Problem, suppose that the city imposes a license fee of $11 per firm.
a. In the short run, what is the new price of a widget?
b. In the long run, what is the new price of a widget?
c. In the long run, how many firms leave the industry?
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abc In the short run this fixed cost has no effect In the long run the price of a widget must ris...View the full answer
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