1. (Market Structure) Define market structure. What factors are considered in determining the market structure of a particular industry?
2. (Perfect Competition Characteristics) Describe the characteristics of perfect competition.
3. (Demand Under Perfect Competition) What type of demand curve does a perfectly competitive firm face? Why?
(Short-Run Profit Maximization) A perfectly competitive firm has the following
fixed and variable costs in the short run. The market price for the firm’s
product is $150.
Output FC VC TC TR PROFIT/LOSS
0 $100 $0
1 $100 $180
2 $100 $180