Problem
1. Economists categorize an industry by three criteria: the number of firms in the industry, the type of product sold, and barriers to entry. Using these three criteria, describe a perfectly competitive industry.
2. Why does a perfectly competitive firm face a horizontal demand curve?
3. Define a firm's profit.
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.