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Figure 20-2
In the accompanying figure, note the variation in these closely related birds. What does this illustrate?
Perfectly Competitive
A market scenario characterized by an infinite number of buyers and sellers, freedom of entry and exit, and a product that is homogenous across all suppliers.
Constant-Cost Industry
An industry where the costs of production do not change as the industry's output changes.
Long-Run Equilibrium
A state in economic theory where all factors of production are fully adjustable, allowing for optimal resource allocation and full competition.
Increasing-Cost Industry
An industry in which production costs increase as the entire market expands production, often due to finite resources.
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