Question

Following the pandemic of COVID - 19, many firms have suffered from earning subnormal
profit. Explain the shapes of the average cost and marginal cost curves and discuss the
market structure for fruits stalls and hotels. Distinguish between the fruit stalls and the
hotels with respect to their market structure when they are earning subnormal profit.
Explain when the fruit stalls consider to closed down their business. You may use diagrams
to support your answer.

The answer is about 900 words.

Answer 1