1) Graph what the demand looks like for the firm facing perfect competition. Explain.

b. How can you determine whether an economic profit or loss is being experienced by a competitive firm? If losses are incurred, then under what conditions should any firm shut down? Show graphically. Explain

a. If economic profits are currently being earned by competitive firms, then what is expected to happen over time? What if zero economic profits are currently being earned? Economic losses? Graph. Explain.