Please answer to the question number 4

3. Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. 10 marks. a. P=14; AC=16; AVC=10 and Q=40 b. P=10; AC=10; AVC=8 and Q=20 4. Show using the same diagram for both monopoly and perfect competition market structure the consumer surplus of each market and how through rent seeking the income is distributed and the deadweight loss is experienced. Explain in your own words. 10 marks