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"Assume a perfectly competitive market is initially in long-run equilibrium. In the short run, a decrease in raw materials prices will cause the firm's average costs to ________. As a result, the profits of existing firms will ________. However, over the long run, this will cause the number of firms in the market to ________, and market price will ________ until firms once again earn a ________."

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91236160

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