1. Graphically represent normal profit. Explain why normal profit is the minimum required to keep operating in the long run.(Draw the graph)

2. Graphically represent and explain why the demand curve of a perfectly competitive firm, a monopolistic firm and a monopoly is different. (Draw the graph)

3. Why is a perfectly competitive market structure very unlikely to exist in the real world?

4. Use graph(s) and marginal analysis, illustrate and explain how you would decide on a profit maximising level of output for your business. (Draw the graph)

5. Does producing a profit maximising quantity guarantee you a profit? Explain.

6. If your business makes an economic loss in the short run, how would you pursue a loss minimisation strategy? Explain.