In a fishing village, there are many producers producing dried shrimp. The dried shrimps are identical and each producer has only a small market share with no control over the price. Hencethe dried shrimp market can be considered perfectly competitive. Question 1 Initially the dried shrimp market is at its long run equilibrium. Examine this situation with suitable diagrams of the dried shrimp market and a representative producer of dried shrimp. Discuss the characteristics of the producer at the long run equilibrium. Question 2

There is a well-reputed medical report suggesting that eating dried shrimp may cause a harmful disease. Appraise the effect of this report on the dried shrimp market and a representative producer of dried shrimp in the short run equilibrium. Support your answers with suitable diagrams of the dried shrimp market and a representative producer of dried shrimp.

Question 3

What will happen to the dried shrimp market and the representative producer's profit and output in the long run? Examine with suitable diagrams of the dried shrimp market and a representative producer of dried shrimp. How does this long run equilibrium differ from (a)? Discuss.

Please provide/ draw diagrams for all questions 1-3.