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lec26slides - REVIEW MICROECONOMICS MACROECONOMICS 1...

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1 REVIEW MICROECONOMICS MACROECONOMICS 2 COMPETITION Free entry and exit: P = AC Firm cannot affect market price: P = MC
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3 P = AC = MC implies P = minAC p* Q AC MC 4 Equilibrium with free entry and exit: P** q** MC AC D Firm Market Q**
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