Explain how a competitive firm reaches a decision to temporarily shut down its business on the basis of its Average Variable Cost (AVC) and makes a decision to exit the market altogether on the basis of its Average Total Cost (ATC).

Explain various types of monopolies? What are the sources of monopolies? Give real life examples of the types and sources of monopolies that are around you.

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Price P" Q* Marginal Cost AFC ATC Demand = AR = MR Quantity Price P" Q* Marginal Cost AFC ATC Demand = AR = MR Quantity

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Conditions for Closing Firms As given in graph above any individual firms decision assuming perfect competition regarding how much to produce does not affect the market price p Therefore p equals the ... View the full answer