2 b. Explain the situation when the firm under perfect competition continues production in the short run even if the firm incurs abnormal loss.

. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm's total cost is: TC = a + bQ?. Use only the cost curve given. a. Determine mathematically the level of output the firm will produce in the long run.

not use ai please

1. The Lotsa Pasta Company sells pasta in a perfectly competitive market at a price of $2 per pound. Its marginal cost, average variable cost, and average total cost curves in the short run can be seen below: price 2 MC ATC AVC d=MR q Find the profit-maximizing level of output and mark it q*. Shade in the area of profit earned by the firm. Is it positive or negative?