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Perfect competition

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Question 5

The diagrams represent a perfectly competitive industry and an individual firm within that industry. Initially, both the market and the firm are in long-run equilibrium.

Perfect Competition Market and Firm Diagrams

Which of the firm-level graphs (A, B, C, or D) correctly illustrates the short-run response of an individual profit-maximising firm to the market shift shown in the Market Diagram?

Graph A

Graph B

Graph C

Graph D

Perfect competition Questions

  1. A Level
  2. /Economics
  3. /Perfect competition