Use the diagram below which diagram shows the short-run conditions of a firm in a perfectly competitive market to answer the question.

In the long run, ____ firms will ____ the industry so that the market supply curve shifts to the _____, until prices ______ sufficiently so that all firms make a normal profit only.

What will happen if a shoe firm sells its shoes at a price lower than the opportunity cost of the inputs used in the production process?

The figure below shows the price, marginal cost and average cost curves facing a perfectly competitive firm.

What is the firm's profit-maximising daily output?

At what price should a firm produce to maximise profits in a perfectly competitive market?

Which one of the following is not a requirement for or a characteristic of perfect competition?

If a perfectly competitive firm’s marginal cost is greater than its marginal revenue at its current level of production, what must the firm do to increase its profit?

If a firm in a perfectly competitive industry raises its price above the market price _____.

Look at the figure below and then indicate whether the statement is True (T) or False (F):

At a price of R20 and Q1 the firm makes a normal profit.