Question: 5. Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market where firms are experiencing economic losses. Identify costs and

5. Use a graph to demonstrate the circumstances that would prevail

in a perfectly competitive market where firms are experiencing economic losses. Identify

5. Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market where firms are experiencing economic losses. Identify costs and the economic losses on your graph. Using your graph, determine whether an individual firm will shut down in the short run, or choose to remain in the market. Explain your answer. (60 points)

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