Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 11 - Pure Competition in the Long Run - Discussion Questions: 1

Answer

The answer is below.

Work Step by Step

While there are a limited number of people in the market initially, the firm should be concerned if they are only breaking even. After all, if they are not making any money, new firms entering the market could drive down prices and cause them to begin losing money.
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