Use the diagram below to answer Questions
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Definitions:
Perfect Competition
A market structure characterized by a large number of small firms, a homogeneous product, and freedom of entry and exit, leading to price taking behavior.
Price Makers
Firms or entities that have the power to influence the price of a good or service in the market, typically due to a lack of competition.
Differentiated Products
Products that are similar but distinguished from each other by variations in quality, features, branding, or some other aspect valued by consumers.
Short Run
A period in which at least one input (e.g., capital) is fixed and cannot be changed.
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