Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium.

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Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium. Explain how the profit motive could lead to lower market prices.

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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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Question Posted: Nov 27, 2015 02:20 AM

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Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium.

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Microeconomics

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