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Consider perfect competition: a. List and very briefly explain the five defining characteristics of a perfectly...

Consider perfect competition:

a. List and very briefly explain the five defining characteristics of a perfectly competitive market.

b. Very briefly explain whether it is possible for firms in a perfectly competitive market to earn zero economic profit even if they have incurred a sunk cost upon entry into the market. Provide an example of such a cost.

c. Very briefly explain the conditions under which a perfectly competitive firm would choose to operate at a loss in the short run, and support your explanation with an appropriate diagram correctly illustrating relevant cost curves and ranges of output prices.

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