List all the characteristics of pure competition.

Explain why purely competitive firms are price takers or why we can represent the demand curve of a purely competitive firm as perfectly elastic at the market price?

3.Indicate which market classification applies to each of the following and justify your answer. The market classifications are pure competition, monopolistic competition, oligopoly, and monopoly.

a.A Kansas wheat farm

b.Supermarket in your hometown

c.The electric utility company that serves your home

d.The automobile industry

4.The concept of profit maximization for all firms in any market structure

a.Using a total revenue and total cost perspective, indicate under what conditions a firm will realize an

economic profit

economic loss.

b.Using a per unit or marginal revenue and marginal cost perspective, indicate under what conditions a firm will realize an

economic profit

economic loss.

5.The following data is for Icarus Enterprises, Inc., a producer of wax

a.After analyzing the data below you can state that this firm is in a(n)

[ (choose one) purely competitive / imperfectly competitive ] industry.

Must explain and show in the table below how you arrived at your answer.

OutputPriceTotal revenueTotal costTotal profit

1$6$3

2124

3186

42414

53022

b.In the short run, the firm should produce __________ units of output to maximize profit.