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Problem regarding perfect competition

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Reference no: EM131750206

Perfect Competition

Draw a perfectly competitive firm's cost curves in long run equilibrium. Be sure to include MR, MC, d, and ATC. Show the profit-maximizing quantity and price charged. THINK about how the situation would change if the market price went up or down. 

Draw a perfectly competitive firm's cost curves when they are making short-run profits. Be sure to include MR, MC, d, and ATC. Show the profit-maximizing quantity and price charged. Label the area that represents profit. Can you see the comparison between this graph versus the one you drew above? Focus on the price's relationship to the other curves.

Reference no: EM131750206

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