Question
Can someone help me with the following Microeconomics questions? Please, if you can, be detailed as possible. a) Is it wise for the government to
Can someone help me with the following Microeconomics questions? Please, if you can, be detailed as possible.
a) Is it wise for the government to intervene in a perfectly competitive? Why or why not. Explain both scenarios if needed.
b) Explain why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost.
c) Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?
d) If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?
e) Aside from advertising, how can monopolistically competitive firms increase demand for their products?
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