Question: Please help #2 II. Graph a perfectly competitive market with the following information. Industry Price: $12 MC @ 400 units: $9 MC @ 500 units:

Please help #2

II. Graph a perfectly competitive market with the following information. Industry Price: $12 MC @ 400 units: $9 MC @ 500 units: $12 MC @ 600 units: $15 MC @ 700 units: $ 22 ATC at Profit Max Q*: $10 Graphically show the area for TR, TC & Profits on the graph. III. a) Describe the factors that drive profits to zero in perfectly competitive markets in the long run. Explain carefully the incentives that drive the market to a long run equilibrium. b) Why would a firm choose to operate at a loss in the short run? Explain carefully. c) When do firms decide to shut down production in the short run? Explain carefully

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