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Please provide a graph if possible for both questions and explain each component? Need help ASAP. Thank you so much. Q1. Illustrate a firm in
Please provide a graph if possible for both questions and explain each component? Need help ASAP. Thank you so much.
Q1. Illustrate a firm in perfect competition earning a normal profit in the short-run, indicate price and output quantity. Can a perfectly competitive firm make economic profit in the long run? Value 8 points. Q2. Illustrate an industry in the long run with an economy of scales (decreasing costs). Indicate where the economy of scales begins or occurs on the LRAC. What 2 factors might contribute to economy of scales for this industry. Provide an example of a real-world firm or industry. Value 8 points Step by Step Solution
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