Erfectly competitive firm making loss

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Reference no: EM131104773

1. Should a perfectly competitive firm making a loss in the short-run always leave the market? Why or why not? What about in the long-run?

2. Should a perfectly competitive firm advertise in an effort to increase its sales and its profits? Why or why not?

3. Can you think of an example of a perfectly competitive firm? Why do you think this firm is perfectly competitive?

Reference no: EM131104773

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