Please answer the questions and make sure it makes sense and easy to read. No cursive.

BUSN 202-04 Exercise #6 Name: 1. What are the main characteristics of a Perfectly competitive market. Explain what they imply for a perfectly competitive rm. (10 Points) 2. Draw the Price curve of perfectly competitive market. Next, draw where the prot is maximized and identify those two curves. (10 Points) 3. Suppose the book-printing industry is competitive in nature and a Varsity publishing company invents a new process that sharply reduces the cost of printing books. What happens to the prots of Varsity publishing company in the short run when their patent prevents other rms from using the new ted1nology. Lastly, what happens in the long-run when the patent expires and other rms are free to use the same technology? (25 points) 4. Under what conditions will a rm exit a perfectly competitive market? Use the > or Dr