a. Draw a perfectly competitive firm earning a loss but still producing. Label the price, quantity and loss. Next to this, draw the market. b. Draw how this market will adjust in the long-run and the effect this will have on the firm.

a. Draw a perfectly competitive firm earning a loss but still producing. Label the price, quantity and loss. Next to this, draw the market. b. Draw how this market will adjust in the long-run and the effect this will have on the firm.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 13P

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Question

a. Draw a perfectly competitive firm earning a loss but still producing. Label the
price, quantity and loss. Next to this, draw the market. b. Draw how this market
will adjust in the long-run and the effect this will have on the firm.

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Step 3: Draw how this market will adjust in the long run and the effect this will have on the firm

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