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i) Discuss why the demand curve facing an industry (i.e., a market) under perfect competition is downward sloping but the demand curve facing each firm

i) Discuss why the demand curve facing an industry (i.e., a market) under perfect competition is downward sloping but the demand curve facing each firm is horizontal. In your answer include why the perfectly competitive firm's demand curve = the equilibrium price of the product = marginal revenue for the product

ii) Briefly discuss, a condition under which a perfectly competitive firm will choose to stay in business even though it does not earn (positive) economic profits.

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