Imagine a firm in a perfectly competitive market. The firm is currently making an economic profit. Carefully explain what will happen in this market and will happen to the firm's profits in the long-run

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A: Hi student, thanks for posting the question. A per the guideline we are providing answer for the…

Q: explain four assumptions of perfectly competitive mar

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Q: xplanations.

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Q: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.

A: There are mainly two types of costs in the process of production.

Q: What are the characteristics needed for a perfectly competitive market?

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