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Draw a Competitive Firm in Each of the Following Situations

question 177

Essay

Draw a competitive firm in each of the following situations.
a. earning abnormal profits
b. making losses
c. Are either of the situations in (a) and (b) sustainable into the long run? If not, explain why and graphically demonstrate how the competitive firm is expected to behave in the long run.


Definitions:

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an object, project, or proposal.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant.

Proposal

A formal suggestion or plan, often in writing, put forward for consideration or discussion by others.

Boundaries

Limits that define the scope of something, such as personal space, professional roles, or geographical borders.

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