Problem
Consider two perfectly competitive industries- Industry 1 and Industry 2. Each faces identical demand and cost conditions except that the minimum efficient scale output in Industry 1 is twice that of Industry 2. In a long-run perfectly competitive equilibrium, which industry will have more firms? What is economic rent? How does it differ from economic profit?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.