1. Why must price cover average costs if the firm is to continue operating?
2. Describe the role that easy entry and exit play in competitive markets over the long run.
3. Why are marginal revenue and price equal for the perfectly competitive firm?
4. Describe the reasons why an industry's costs might increase in the long run. Why might they decrease over the long run?
5. Video Question: What was the most important concept presented in this video? Using your own words explain why you feel this way.