Problem
1. Consider this statement: "The perfectly competitive firm will sell all the quantity of output consumers will buy at the prevailing market price." Do you agree or disagree? Explain your answer.
2. Suppose a perfectly competitive firm's demand curve is below its average total cost curve. Explain the conditions under which a firm continues to produce in the short run.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.