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(Figure: Long Run Output I) Initially, the constant-cost industry was in long-run equilibrium at point A when the demand for the good increased to D2. How much output will be produced in the long run as a result of the demand increase?
Discount Rate
The interest rate used in calculating the present value of future cash flows.
Economic Value
The monetary worth of an asset, service, or company based on its ability to generate income or its utility.
Compounded Monthly
Interest that is compounded monthly accumulates interest on the principal amount on a monthly basis, effectively increasing the interest earned over time due to the compounding effect.
Lump Sum Payment
A large single payment made at a particular time, as opposed to multiple smaller payments.
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