1. Explain why a firm in perfect competition is a price-taker. 2. Draw the following diagrams. Be...

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1. Explain why a firm in perfect competition is a "price-taker".

2. Draw the following diagrams. Be sure to use a ruler and to include accurate labels for the axes. Also, be sure that your MC curves cross the minimum point of the AC curves.

• A firm in perfect competition earning abnormal profits.

• A firm in perfect competition making economic losses.

• A firm in perfect competition in Its long run equilibrium earning normal profits.

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Economics Course Book 2020

ISBN: 9781382004961

2020 Edition

Authors: Jocelyn Blink, Ian Dorton

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Question Posted: Feb 17, 2024 02:00 AM

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1. Explain why a firm in perfect competition is a price-taker. 2. Draw the following diagrams. Be...

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In perfect competition a firm is considered a pricetaker because it has no control over the market p...View the full answer

Economics Course Book 2020

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