Define a price taker and explain

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Problem 1: Define a price taker and explain, using numerical example, why the average revenue and marginal revenue are equal to the price that the firm charges.

Problem 2: Graphically represent normal profit and explain why making normal profit is a requirement for any firm who wishes to remain in business in the long run.

Problem 3: Why does the share market closely reflects a perfectly competitive market?

Problem 4: Why is a perfectly competitive market structure very unlikely to exist in the real world?

Problem 5: Frank owns a Café and for the last 2 months his total revenue was not sufficient to cover his average total cost resulting in an economic lost. What are Frank's options in the short run to minimise his loss. NOTE: There are two options available to him.

Reference no: EM132575643

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