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Illustrate short run profit maximization scenerio of a competitive firm in case of loss.
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- Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?Calculate the amount of profit or loss made by this firm at the equilibrium output. State the type of profit.
- MC ATC 24 P = MR 20 18 4 100 350 500 700 q Bales of hay from the graph of a perfectly competitive firm above, answer the following questions:# 1. What is the profit maximization level of of output? ( 2. What is the value of ATC at the best level of output? 3. what is the amount of profit the firm makes at that level of output? show your calculations. 4. At what price firm will breakeven В IGraph represents the cost structure of an individual firm in a perfectly competitive market. Please find the break-even and the shut-down points (both corresponding quantities and prices) for this firmWhat does acceptable loss mean for a competitive firm? Explain and Draw a graph