2.1 Use Graph A to identify the type of market structure that the firm belongs to and highlight its characteristics. (14) 2.2 Evaluate the long-run sustainability of the above scenario for the firm. Explain how graphs A and B would change in the long-run.

QUESTION TWO [30] Graph A represents a firm and Graph B represents a market of a certain market structure. Use the given diagrams to answer the questions that follow: Graph A MC AC Unit revenue and cost AR - MA Quantity (o) Economic loss Graph B P. 2.1 Use Graph A to identify the type of market structure that the firm belongs to and highlight its characteristics. (14) 2 2 Evaluate the long-run sustainability of the above scenario for the firm. Explain how graphs A and B would change in the long-run. (16)