CupcakeLover9736 CupcakeLover9736

05-06-2023
Business

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Suppose, in a perfectly competitive market, a firm is producing at P=SRMC (short-run marginal cost) >SRATC (short-run average total cost) and P>LRAC. Also, the market supply equals the market demand. 1) Is the firm in a short-run equilibrium? Why, or why not? 2) Is the firm in a long-run equilibrium? Why, or why not?

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