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Assume vegetables are sold in a perfectly competitive market and firms are making zero economic profit. Explain and illustrate graphically, the effect of increase in
Assume vegetables are sold in a perfectly competitive market and firms are making zero economic profit. Explain and illustrate graphically, the effect of increase in price on the short run position of a single firm selling vegetables.
(Hint: Make sure your graph includes the firm's demand curve, marginal revenue curve, marginal cost curve and average total cost curve and also explain the profit maximising position of a firm).
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