• Discuss why your orange farm business is likely a perfectly competitive firm.
• Describe a scenario where you would want to stay in business despite operating at a loss. [Hint: this has to do with the concept of shutdown price.]
• Discuss why an orange farm like yours will likely have zero economic profits in the long run.
• Explain why this orange farm is likely to be allocatively and productively efficient.

Answer rating: 100% (QA)

1 Perfectly competitive firm An orange farm business is likely a perfectly competitive firm because there are many small orange farms in the market pr... View the full answer