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Question

Assume perfect competition exists for Good G, and assume the market is in long run equilibrium.

Depict the market for good G, depict supply, demand, equilibrium price and quantity with subscript 1. To the right of the market, depict the long run equilibrium situation for firm i that is one firm that produces good G depicting initial firm curves with subscript 1.


Return to your diagram for the individual firm in A, and illustrate the short-run effect if there is an increase in wages to produce good G; depict changes with subscript 2.


Return again to your diagrams in A, and illustrate movement back to long run equilibrium.


Please show diagrams and explanation how to complete.

Step-by-step answer

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ia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui


Good G market .png


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Good G market 2 .png


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Good G new entrants .png

Good G market .png
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Subject: Business, Economics

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