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.

Question

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The Answer of 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.

Draw a Competitive Firm in Each of the Following Situations