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Explain Why a Long-Run Equilibrium Can Occur Only When Firms

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Essay

Explain why a long-run equilibrium can occur only when firms in the industry are at the minimum of their average total cost curves.


Definitions:

Expressed Attitudes

Opinions or stances that individuals openly communicate to others through verbal or non-verbal means.

Voluntary Adherence

The act of willingly following or committing to a policy, rule, or guideline.

Reference Group

Kelley’s term for a group that is psychologically significant for our behaviour and attitudes.

Private Change

A modification in a person's thoughts, feelings, or behaviors that occurs internally and is not immediately observable to others.

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