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Suppose Kevin is operating a cake shop at a perfectly competitive market in South Korea and...

Suppose Kevin is operating a cake shop at a perfectly competitive market in South Korea and producing at the shutdown point.

a. Draw graphs to show and explain the price and quantity of Kevin’s cakes, as well as his profit.

b. With the graphs drawn in response to question (a), show and explain the long-run adjustment process for Kevin’s cake shop and the cake industry.

Hoping to get a complete, detailed answer with graphs.

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