Question: 1) Why do we consider Perfectly Competitive Markets to be the benchmark against which other market structures are evaluated? 2) A firms goal is to

1) Why do we consider Perfectly Competitive Markets to be the benchmark against which other market structures are evaluated? 2) A firms goal is to maximize profits. Using appropriate charts, show how the firm operating in a perfectly competitive market achieves this goal. Ensure that your answer includes commentary on the profit maximization condition, what it is and why it makes sense (if it does). 3) Pick a market that you believe to be close to a perfectly competitive market. Explain why you picked this particular market. Did anything give you pause? Does this market satisfy all of the characteristics of a PC market? If not, what changes would you need in order to fully meet the requirements ? 4) Why would a firm enter a perfectly competitive market if they knew that there were no economic profits in the long run?

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