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Perfect competition is a market structure where there are large number of buyers and sellers produce homogeneous products.

5. False From the figure, it is clear that the perfect competitive firm make positive economic profit of ABRH at price A which is set by thearket forces of demand and supply since price greater than ATC. 6. True Under Perfect competition, supply curve of a firm represent the amount of products that prepared to put on the market at various levels of prices. It is given by the points of intersection of the mc with successive demand curve. Thus, the portion of Marginal cost curve on the Average variable cost curve is the short run supply curve of the firm under Perfect competition. 7. False An industry with a perfect elastic long run supply curve is called a constant cost industry. The horizontal long run supply curve implies that constant factor prices which shows the prices do not increase as industry output increases. 8. False Under perfect competition, firm make zero economic profit Because if the free entry and exit of the firms. Perfect Competition Assignment Paper

Under perfect competition, the shape long run supply curve depends on whether the firm experiences constant returns to scale or diminishing return to scale or increasing returns to scale.