A firm has variable costs of $42,000 at its profit maximizing/loss minimizing production

level of 15,000 units, and sells the product for $2.70. Its fixed cost are $8,000. Is the firm

earning an economic profit, economic loss, or normal profit? Should the firm stay in

production over the short run? Over the long run? Why?

2)onopolistic competition and oligopoly are both theories of imperfect competition. How

are these two models similar? How do they differ?