Question: Please answer the question below, provide good explanation and examples to support the answer. Also provide references. Explain the relationship between market price and a

Please answer the question below, provide good explanation and examples to support the answer. Also provide references.

  1. Explain the relationship between market price and a firm's profitability in a perfectly competitive market.
  2. Explain how the zero-profit point and the shutdown point for a firm operating in a perfectly competitive market are each determined.
  3. Explain whether a patent should be used to provide an incentive for investors? If your answer is positive, explain whether there should be any limits or conditions relating to the same.

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