Chapter
11
Pure
Competition
in
the
Long
Run
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The
Long
Run
in
Pure
Competition
In
the
long-run
Firms
can
expand
or
contract
capacity
Firms
can
enter
or
exit
the
industry
LO
11-2
1
Profit
Maximization
in
the
Long
Run
Easy
entry
and
exit
The
only
long-run
adjustment
we
consider
Identical
costs
All
firms
in
the
industry
have
identical
costs
Constant-cost
industry
Entry
and
exit
of
firms
do
not
affect
LO
resource
prices
11-3
1