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Competitive Industry
An industry characterized by many buyers and sellers, such that no single market participant has significant influence over prices.
Long-Run Equilibrium
A state in which all factors of production and costs are variable, and firms are making neither excess profit nor losses, typically reached over time.
Decreasing-Cost Industry
An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.
Long-Run Supply Curve
A graphical representation showing the relationship between market prices and the amount of output that firms are willing to supply in the long run.
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