1. Discuss the short-term and long-term effects in a perfectly competitive market if an existing firm is making profits and, also, if a firm is making losses (6%). Use appropriate graphs to illustrate your explanations. 2. Discuss the short-term and long-term effects in a monopolistically competitive market when an existing firm is making profits and, also, when an existing firm is making losses (6%). Use appropriate graphs to illustrate your explanations. (6%) 3. What do economists mean by the concepts of product differentiation and non-price competition? (6%)