Economic

1. Define and explain the characteristics of a perfectly competitive market. Provide real-world examples to illustrate these characteristics. 2. Suppose a firm in a perfectly competitive market has the following cost structure: 1. Total Fixed Costs (TFC) = $1,000 2. Variable Costs (VC) = $50 per unit 3. Market price (P) = $80 per unit 4. Current production quantity (Q) = 100 units a. Calculate the firm's total cost (TC) and average total cost (ATC) at the current production level. b) Determine the firm's total profit or loss in the short run at the current production level. Explain whether the firm should continue to produce in the short run 3. Discuss the conditions under which a perfectly competitive firm should shut down in the short run. Using the information from Question 2, determine whether the firm should shut down in the short run and explain why or why not. 4. Explain how the individual firm's short-run supply curve in a perfectly competitive market is determined. Use the