What Must Be True for an Industry to Be in Long-Run

question 87

Essay

What must be true for an industry to be in long-run equilibrium?

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Definitions:

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting its true value under normal market conditions.

Equipment

Equipment consists of the tools, machinery, and other durable assets used by a business to carry out its operations.

Cash

Money in the form of currency, including coins and banknotes, which is used as a medium of exchange and legal tender.

Equally

In a manner that showcases uniformity or parity in distribution, value, or measure among all parties or elements involved.