Presume a competitive industry has excess supply


Presume a competitive industry has excess supply represented by a high number of firms producing surplus output; as the industry reaches long run equilibrium, what happens to each of the following:

1. Market demand curve

2. Market supply curve

3. The number of firms in the industry

4. The equilibrium or market clearing price

5. Economic profits for firms in the industry

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Microeconomics: Presume a competitive industry has excess supply
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