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Assignment help 954

The long run price of a unique good or service (available in limited quantities only) differs from the long run price of a manufactured good subject to competition. The long run price of a unique good or service:

There is no difference in price determination between the two types of products or services.

is based on the product’s cost of production plus a normal allowance for profit.

is always lower than the equilibrium price due to the particular nature (it’s inelastic) of the product in the market.

can be significantly above the cost of production when demand is high, even in the long run.


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