Est. Budget: $8.00
A competitive industry begins in a long run equilibrium.
1. Draw a diagram to describe it. 15 marks
2. Explain effects on profits and price of items in the short run if the company of the same industry above invents a new method of sharply reducing the cost of manufacturing and their patent prevents other businesses from using the new technology. 15 marks
3. What are the long run effects on the company when the patent expires and ...