Mr. Wong has opened a supermarket "XYZ" in Hong Kong.

a) What kind of market structure does the supermarket in Hong Kong belong to? Please explain with TWO reasons.

b) Please state TWO examples of "non-price competition" among supermarkets in Hong Kong.

c) To operate the XYZ supermarket, Mr. Wong faces the following costs:

-a 3-year contract with the landlord to rent the shop,

-the cost of food, and

-employment of 2 staff members.

(i) Does Mr. Wong face a "Short Run" or "Long Run" situation?

(ii) Identify TWO fixed costs and TWO variable costs Mr. Wong might also face when running the supermarket.

(iii) Due to the increase in the cost of food, the XYZ supermarket is facing a loss.If Mr. Wong finds that the revenue is enough to cover all of the variable costs but not the fixed costs, should Mr. Wong continue to run the business or close the business?Please explain with a diagram