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Microeconomics question Consider perfect competitive market for Sugar where many rms are producing Sugar. However, they are currently making economic losses. 3. Draw two graphs

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Microeconomics question

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Consider perfect competitive market for Sugar where many rms are producing Sugar. However, they are currently making economic losses. 3. Draw two graphs and illustrate the present situation for the typical rm and the Sugar market. Answer b. Assume there is no change in either demand or the rms' cost, explain what will happen in the long run to the price of sugar, marginal cost, average total cost, the quantity supplied by each rm, and the total quantity supplied to the market. Show and explain with a hypothetical graph

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