1. In the Long-Run, we expect firms in a perfectly competitive market structure to earn zero economic profits. Explain why. What would we expect to happen if firms earned positive economic profits? 2. Explain the terms, Price Taker and Price Seeker. For each case, identify a market structure where we are likely to observe the behavior. 3. How does a monopoly choose the price and quantity to maximize its profits? 4. If a monopoly takes over a previously competitive market, what happens to the market price and the quantity traded? 5. Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product