From the business model you've been cultivating since our first week, this week you're going to apply it to perfect competition discussed in our lesson notes and chapter. Now, your firm may not "operate" in an environment of perfect competition given the nature of your product/service. However, even it that's the case, still apply the tenets to your company just so you're aware that perhaps, one day, your company may experience such a market. If that be the case, you'll know what to expect.

Keep in mind, "Every battle is won before its ever fought." Your econ instructor? NO!!! Sun Tzu, Chinese military historian/philosopher from antiquity. :)

...so then, relate the following to your business in a one-page essay, and remember to separate your paragraphs:

• Why firms can "enter" or "exit" from the market without great cost
• "Why" your product is homogenous to the consumer.
• "Why" you have no influence over the market price.
• "Why" you face consumers with "horizontal demand curves" and the impact of that reality on your price and marginal revenue.
• "How" additional competitors affect the price of your product/service.
• If MC, ATC, fall and rise "what" happens to your profits and "why."
• "When" it might be time to "leave" the industry.