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List and describe the four assumptions

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Reference no: EM132526569

1. a) List and describe the four assumptions that underlie the theory of perfect competition.

b) What is the shape of the demand curve faced by the perfectly competitive firm?

c) Explain the situation when the firm under perfect competition continues production in the short run even if the firm incurs abnormal loss. Illustrate your answer.

Reference no: EM132526569

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