Ratings will be based on answer correctness, clear explanations, and organizatio
ID: 1204971 • Letter: R
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Ratings will be based on answer correctness, clear explanations, and organization of formatting. Thank you very much in advance!
Drop down options for blue blank: ARE FEWER / ARE MORE / IS AN EQUAL NUMBER OF
3. Entry and exit in the long run Suppose that toy manufacturers in a competitive price-searcher market earn positive profits in the short run In this scenario, there manufacturers in the industry than there would be in long-run equilibrium. Now consider the long run in which toy manufacturers are free to enter and exit the market. The following graph shows the demand curve in the market for toys. Show the possible effect of free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph. Deman mand QUANTITY (Toys)Explanation / Answer
there are fewer manufacturers in industry,than there would have been in long run equilibrium.
Firms earn zero profit in the long run.
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