Frank is a young, prominent businessman. He is the founder and owner of Frank Rice Ltd, an Australian company that produces and exports rice to various countries across the world.

Assume the international market for rice exporting, in which Frank Rice Ltd operates, is a perfect competition market.

Clearly explain how Frank sets the price and decides how much quantity of output to produce. How much economic profit does Frank tend to earn? Clearly explain.Draw an appropriate firm diagram that represents the business of Frank Rice Ltd. Make sure to clearly and adequately label your diagram.

Frank holds a firm belief that his rice is superior to that offered by other competitors in the market. As a result, he has been looking to raise the price of his rice in order to reflect its superiority.Clearly explain what will happen to the business of Frank Rice Ltd if Frank follows through to raise the price.