1.Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. a. P=14: AC=16: AVC=10 and O=40 b. P=10; AC=10; AVC=8 and Q=20

Microeconomic Theory
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Chapter14: Monopoly
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1.Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. a. P=14: AC=16: AVC=10 and O=40 b. P=10; AC=10; AVC=8 and Q=20

2.Show using the same dagram for both monopoly and porfect competition make sructure the consumer surplus of each market and how tlirisuhia secking lbe incrme is destributed and the 10 marks deadweight loss expetienced. Explaineyour Owa words.

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