Question: How will the situation change over time? Losses will induce firms to leave this market until the profit maximizing price falls to zero. Profits will

How will the situation change over time? Losses will induce firms to leave this market until the profit maximizing price falls to zero. Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. This market is already in long-run equilibrium, and will not change throughout time

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