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Use a Graph to Demonstrate the Circumstances That Would Prevail

question 35

Essay

Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms are earning economic profits. Can this scenario be maintained in the long run? Explain your answer.


Definitions:

Work in Process

Inventory consisting of items that are in the production process but are not yet completed products.

T Accounts

A representation in accounting used to track the increases and decreases in individual financial statement items.

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