1. Assume ‘potatoes are sold in a perfectly competitive market and firms are making break-even. Explain and illustrate graphically, the effect of change in the market price on the short run position of a single firm selling potato chips. (make a graph for both market and firm, answer must include 400 words). 2. Based on the short run position identified in Q1, explain and illustrate graphically the effect of entry/entry on the long run position of the firms. (make a graph for both market and firm, answer must include 400 words). (Hint: your answer should include graphs for both market as well as individual firm).
1. Assume ‘potatoes are sold in a perfectly competitive market and firms are making break-even. Explain and illustrate graphically, the effect of change in the market price on the short run position of a single firm selling potato chips. (make a graph for both market and firm, answer must include 400 words). 2. Based on the short run position identified in Q1, explain and illustrate graphically the effect of entry/entry on the long run position of the firms. (make a graph for both market and firm, answer must include 400 words). (Hint: your answer should include graphs for both market as well as individual firm).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Assume ‘potatoes are sold in a
2. Based on the short run position identified in Q1, explain and illustrate graphically the effect of entry/entry on the long run position of the firms. (make a graph for both market and firm, answer must include 400 words).
(Hint: your answer should include graphs for both market as well as individual firm).
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