List the Three Conditions That Must Be Met When a Perfectly

question 43

Essay

List the three conditions that must be met when a perfectly competitive industry is in long-run equilibrium.

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Definitions:

Perfectly Horizontal

A line on a graph that shows a constant value, indicating no change in the variable it represents across different situations.

Perfectly Vertical

A line on a graph that shows an infinite response in the variable measured on the y-axis for any change in the variable on the x-axis, indicating no change regardless of input.

Percentage Change

A mathematical calculation that indicates the degree of change over time as a proportion of the starting value, often expressed as a percentage.

Price Changes

Variations in the cost of goods and services in an economy over a period, affecting inflation or deflation rates.