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If this is an argument that, when there are economic profits to be made in a market: 1. The "size" of the firms will increase to compensate : Do take note of di
by dingfeng_quek 15y ago
If this is an argument that, when there are economic profits to be made in a market:
1. The "size" of the firms will increase to compensate : Do take note of diseconomies of scale beyond a certain size.
2. New firms will enter to compete in the market : Depends on the barriers to entry.