Question: QUESTION 2 [12 MARKS] (a) Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms are earning economic profits.

QUESTION 2 [12 MARKS]

(a) Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms are earning economic profits. [5 Marks]

(b) Can this scenario be maintained in the long run? Explain your answer. [7 Marks]

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