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Problem Set #2

Graduate Level Problem Set. First question is in relation to the article the Population Problem: Theory and Evidence by Partha Dasgupta.

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    Q : Economic profits by competitive

    Economic profits produce competitive pressures which cause: (w) each firm’s output to shrink during the short run. (x) an industry’s output to increase. (y) market prices to increase. (z) firms to leave an industry.

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