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What is "dynamic efficiency"? How would you show the development of dynamic efficiency on a competitive firm's cost structure?

If the price-taking firm was earning zero economic profits before the dynamic efficiency, will the level of profits change after? If so, show the extent of the change.

If all price-taking firms have access to the dynamic efficiency, what will happen to the firm's profits in the Long Run?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938143

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