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    Microeconomics Study Set 31
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    Exam 13: Perfect Competition
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    Firms Know That When They Enter a Profitable Industry, Profits
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Firms Know That When They Enter a Profitable Industry, Profits

Question 19

Question 19

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Firms know that when they enter a profitable industry, profits will eventually be eliminated by competition. Why would a firm want to enter such an industry?

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The decision to enter a profitable indus...

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