1. Explain the short-run break-even price as well as shut-down price for a competitive firm.
2. Why is the level of output where marginal revenue equals marginal cost called as the profit-maximizing output under perfect competition? Show your proof.
3. Describe the shape of short run supply curve in perfect competition.
4. Do you agree that companies under perfect competition as well as monopoly are making profits in the long run? If yes, why? If not, why not?
5. Compare (individual demand curve and marginal revenue curve) under perfect competition and (individual demand curve and marginal revenue curve) under Monopoly.