The long-run competitive equilibrium model can be used to predict the number of firms in an industry given a certain level of market demand.

Question

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The long-run competitive equilibrium model takes into account various factors such as market demand, production costs, and entry/exit barriers to predict the number of firms that will operate in an industry in the long run. This model is often used by economists to analyze and predict the behavior of competitive markets.

The Long-Run Competitive Equilibrium Model Can Be Used to Predict