EconExperiments
- Free Entry & Exit
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Free entry and exit | ||
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Long run | ||
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Students are farmers who must choose a crop to plant. Students calculate their profits based on the market demand function and the no. of farmers in the same crop market after each round. | ||
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Due to free entry and exit of each crop market, students have the incentive to swap to a crop market where profits can be earned. Thus, only zero profit can be earned in the long run equilibrium. | ||
Teaching Materials:
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3) Diagram (English) |
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4) Diagram (Chinese) |
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