A firm develops a patented production method that allows it to manufacture a product for $20 per unit, while all its competitors' costs remain at $30 per unit. This cost advantage allows the firm to earn significant surplus profits. What is the most likely long-term consequence for these specific surplus profits when the patent expires?
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A firm develops a patented production method that allows it to manufacture a product for $20 per unit, while all its competitors' costs remain at $30 per unit. This cost advantage allows the firm to earn significant surplus profits. What is the most likely long-term consequence for these specific surplus profits when the patent expires?
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