Problem
1. At the output at which MC MR, suppose that price were higher than AVC but lower than ATC. What should the firm do in the short run and the long run? Explain your answer.
2. Does the perfect competitor always break even in the long run? Explain why or why not.
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.