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Explain Why a Long-Run Equilibrium Can Occur Only When Firms

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Essay

Explain why a long-run equilibrium can occur only when firms in the industry are at the minimum of their average total cost curves.


Definitions:

Molarity

A measure of concentration expressing the number of moles of a solute per liter of solution.

Diluting

The process of reducing the concentration of a solute in a solution, usually by adding more solvent.

Molarity

An indicator of solute density within a solution, measured in moles per liter of the solution.

NaCl

Sodium chloride, commonly known as table salt, an ionic compound formed from the chemical reaction between sodium and chlorine.

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