1-Market Structure
2- Market Power.
3- Pure competition
4- Long Run
5- Short Run
6- Price Setting
7- Price making
8- Degree of freedom
9- Price in Pure competition
2. Complete the table directly below by calculating marginal product and average product.
| Inputs of Labor | Total Product | Marginal Product | Average Product |
| 0 | o | ||
| 1 | 25 | ||
| 2 | 44 | ||
| 3 | 61 | ||
| 4 | 75 | ||
| 5 | 84 | ||
| 6 | 90 | ||
| 7 | 93 | ||
| 8 | 92 |
3. Why is a firm in perfect competition a price taker?
4. In perfect competition, why is a firm’s marginal revenue curve also the demand curve for the firm’s output?
5. What is the lowest price at which a firm produces an output? Explain why.
6. Why does a firm in perfect competition produce the quantity at which marginal cost equals price?
7. Explain why resources are used efficiently in a competitive market.