1. If a firm makes an economic loss, it will shut down?
2. Suppose a competitive, profit-maximizing firm operates at a point where its short-run average 1cost curve is upward sloping. This implies the firm earn economic profits.
3. Consider two perfectly competitive industries-Industry 1 and Industry 2. Each faces identical demand and cost conditions except that the minimum efficient scale output in Industry 1 is twice that of Industry 2. In a long-run perfectly competitive equilibrium, industry 1 will have more firms.