1. Why can companies operating under full competition not influence the price of goods? Justify briefly.
2. Draw (short-term) curves for marginal revenue, unit revenue, marginal cost, fixed unit cost, variable unit cost and total unit cost for an individual company operating under complete competition. Be sure to show all the relationships between these curves.
3. Mark at what price the company will be closed down.
4. Mark at what price the company will make financial profit.
5. Also mark the company's supply curve.
6. Explain carefully why the marginal cost has the form it has.