How Short-run Profits or Losses Induce Entry or Exit

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How Short-run Profits or Losses Induce Entry or Exit

Assume that the market for bottles of wine is a monopolistically competitive market.

For various annual production quantities, the following graph shows a typical firm's marginal cost curve (MC), average total cost curve (ATC), demand curve (average revenue - AR), and marginal revenue curve (MR) in the short run.

According to the graph, a typical firm in this market is . Therefore, in the long run, firms will the market.

Now assume the following graph shows a typical firm's marginal cost curve (MC), average total cost curve (ATC), demand curve (AR), and marginal revenue curve (MR).

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microeconomics economics

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How Short-run Profits or Losses Induce Entry or Exit

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18. How short-run profit or losses induce entry or exit

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2. Entry or exit in the long run Fantastique Bikes is a company that manufactures bikes...

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How Short-run Profits or Losses Induce Entry or Exit

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