1. Describe in your own words when a firm is in the "short run" versus the "long run." 2. Visualize a perfectly competitive industry like lawn service. Some firms are earning excess (economic) profits. What happens next in the market? In the firms? Describe the 4 events which will result in the new equilibrium. 3. True or False, and EXPLAIN why: "Perfectly competitive firms can earn economic profits in the short run, but not in the long-run."