1. Discuss how much of its sales might it lose? Why? Can a competitive firm ever raise its prices if a perfectly competitive firm raises its price above the prevailing market rate?
2. Discuss how does an employer-paid Social Security tax on wages affect a competitive firm's supply curve?
3. Explain why wouldn't producers necessarily want to form the output at the lowest average cost? Under what conditions would they end up doing so?
4. Determine what industries do you regard as being highly competitive? Can you find out any barriers to entry in those industries?