A perfectly competitive market is in a long-run equilibrium. Prices of variable inputs for the typical firm decrease. Describe what will happen in the short run, to the typical firm’s marginal costs, average fixed costs, average costs, profits, and production as the firm makes its choices. In each case, describe why those changes take place. Describe exactly why the firm decides to make changes. As part of that discussion, summarize what happens in the market and how those changes relate to the typical firm. You do not need to discuss why the changes take place in the market. Outline in several sentences what will happen in the long run to the typical firm and the market.

Assume that the plum market has lots of different farms.  They are producing pretty much the same product. The plum market is very much like a perfectly competitive market.  When answering these questions, please use an explanation in words and the diagrams of the perfect competition model.   A capitalist interested in the California plum market has asked you for an analysis.  The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity.  Please apply the perfect competition model. b. In the long-run, what do you think will happen in the plum market? Why? Don't forget to use perfect competition diagram(s) when explaining it.

Economics In the Week 1 Discussion (also known as a small business scenario), you develop a specific business good or service. You should use this specific good or service for all of the remaining weeks, please do not change your good or service. ( Service is a Nail Salon ) If the market for your good were to suddenly become perfectly competitive. Indicate what happens to the firm’s demand curve. Describe the perfectly competitive equilibrium price and quantity. Discuss the prospects for your small business in the long run.

Good X is a perfectly competitive market. The equilibrium quantity is 22 million units of good X. Why is 22 million units closer to allocatively efficient than 25 million units?.