Question: So what is the long run adjustment process for both the firm and the industry and what will happen to the number of firms in

So what is the long run adjustment process for both the firm and the industry and what will happen to the number of firms in the new long-run equilibruim?

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1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.

4. It is only at this point that you can give the problem your full attention in relation to the various ways you have framed the problem.