Draw the long-run equilibrium graph for a perfectly competitive firm. Be sure to label the quantity Q*, the price P*, the average cost per unit ATC*, and shade any profit or loss region (if there is one!

Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and demand faced by a firm in such a market coincide? Explain.       please don,t copy and paste from anywhere. Answer step by step and use graph if possible

Use a graph to demonstrate the scenario where a competitive firm would be earning positive profit in the short run. Can this scenario be maintained in the long run? Why? What are the ‘shutdown point’ and ‘break even point’ of a competitive firm . Explain with diagram. A competitive market starts in a situation of long run equilibrium. Then there is an increase in demand. Explain what happens in the short run and long run, using necessary diagrams.

Long-run competitive equilibrium requires:   P = MR =MC   MC = ATC   P = minimum ATC   All of the above

Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be allocatively efficient.

Suppose the cost of renting a snowy bus were to fall from $30 per hour to $20 per hour. What do you expect would happen in the short-run (stage 1 equilibrium) to (a) the number of cones produced by each snowy bus; (b) total production of cones in the market, and (c) economic profits of snowy bus businesses? Briefly explain (you don't need to do any calculations, just explain inwords).

Consider the following figure for a perfectly competitive firm. Price, Costs MC K ATC E F AVC R J P = MR Q1 Q2 Q3 Q4 Q5 Output The figure above shows a perfectly competitive firm. To maximize profits or minimize losses, the firm will produce units and its profit/loss is given by Q3; Area of the rectangle JEKQ Zero ; Area of the rectangle IEKM Q3; Area of the rectangle JIMQ Zero ; Area of the rectangle JEKQ

For a perfectly competitive firm, profit maximization doesnot conflict with resource allocative efficiency. Do you agree?Explain your answer.