Question: a) Using diagrams, explain under what conditions a perfectly competitive firm will (i) shut down in the short run, and (ii) shut down in the

a) Using diagrams, explain under what conditions a perfectly competitive firm will (i) shut down in the short run, and (ii) shut down in the long run.

(b) Compare and contrast the profit-maximising firm in perfect competition and monopoly with respect to price and output levels.

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