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The Following Relationship Between Price, Average Total Cost, and the Number

Question 123

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The following relationship between price, average total cost, and the number of firms describes an industry in a single country. The following relationship between price, average total cost, and the number of firms describes an industry in a single country.   (A)Graph the relationship between average total cost and the number of firms, as well as the relationship between price and the number of firms. (B)Find the long-run equilibrium price and number of firms. (C)Suppose the country opens to trade with other countries. Which line will shift and in which direction? What will happen to the long-run equilibrium price and the number of firms in the industry? (A)Graph the relationship between average total cost and the number of firms, as well as the relationship between price and the number of firms.
(B)Find the long-run equilibrium price and number of firms.
(C)Suppose the country opens to trade with other countries. Which line will shift and in which direction? What will happen to the long-run equilibrium price and the number of firms in the industry?

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(A) blured image (B)The long-run equilibrium price i...

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