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This assignment gives students practice in identifying short-run profits and losses in a perfectly competitive market. Students will use both the market and firm graph to determine what will happen in the market in the long-run (equilibrium), Students will also examine the impact of lump-sum and per-unit taxes/subsidies on a firm's level of output.
This assignment is appropriate for all levels of economics, but is essential for students who will be taking the AP Microeconomics Exam.
-2 page assignment
-2 page answer key