A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a positive economic profit....

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A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a positive economic profit. (a) Is the market price greater than, less than, or equal to the firm's price? Explain. (b) Draw correctly labeled side-by-side graphs for both the market and a typical firm and show each of the following. (i) Market price and quantity, labeled Pm and Qm (ii) The firm's quantity, labeled Qf (iii) The firm's marginal revenue curve, labeled MR (iv) The firm's average total cost curve, labeled ATC (v) The area representing total cost, shaded completely A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a positive economic profit. (a) Is the market price greater than, less than, or equal to the firm's price? Explain. (b) Draw correctly labeled side-by-side graphs for both the market and a typical firm and show each of the following. (i) Market price and quantity, labeled Pm and Qm (ii) The firm's quantity, labeled Qf (iii) The firm's marginal revenue curve, labeled MR (iv) The firm's average total cost curve, labeled ATC (v) The area representing total cost, shaded completely A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a positive economic profit. (a) Is the market price greater than, less than, or equal to the firm's price? Explain. (b) Draw correctly labeled side-by-side graphs for both the market and a typical firm and show each of the following. (i) Market price and quantity, labeled Pm and Qm (ii) The firm's quantity, labeled Qf (iii) The firm's marginal revenue curve, labeled MR (iv) The firm's average total cost curve, labeled ATC (v) The area representing total cost, shaded completely

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