1. Define and Compute Sr shut down and breakeven price, identify the short run supply curve of the firm.
2. Competitive Firm Equilibrium Long run, Exit/Entry in Long Run, Explain why a competitive firm can only earn normal economic profit (define) in long run.
3. Define monopoly, explain why the MR and P( AR) curve for a monopolist are different and why they are downward sloping and why does MR lie below the AR curve. Compute Monopoly P and Q and profits; compare monopoly price/quantity/profits with a competitive market price and quantity. Compute CS, PS, TS for monopoly as well as competitive market. Compare CS, TS, monopoly vs competitive markets; compute and explain the deadweight loss of monopoly markets. Use the comparison to comment on the antitrust laws of the country
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