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Question

A perfectly competitive firm is producing the profit maximizing output

and has a loss.  Assuming this firm continues operation, when the transition to the long run is complete its selling price will be _______, and its output will be _______.  (Suggestion: draw yourself a sketch.) 


1- higher, lower
2- higher, higher
3-lower, higher
4- lower, lower

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A perfectly competitive firm is producing the profit maximizing output and has a loss. Assuming this firm continues operation, when the transition to...
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