Question: 1 Without the use of a graph, explain why a perfectly competitive industry makes economic profits in the short-run and zero profit in the long-run.

1 Without the use of a graph, explain why a perfectly competitive industry makes economic profits in the short-run and zero profit in the long-run. (5 Marks)

2 Who determines the price under a monopoly and how is the price determined? (5 Marks)

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