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We are learning quite a bit about market structures in this module week’s summit session. Hopefully, you have had the opportunity to discuss market structures with your colleagues leading up to this activity. Now, let’s dig a little deeper into market structures. In this activity, you will draft a document addressing the following topics:
Identify the differences between all four market structures in the short-run and long-run. This will be helpful as many of you may hold management positions and/or become entrepreneurs in the near future. When deciding what type of firm to own or operate, you may find that one market structure may be more advantageous over another based on short-run and long-run costs.
Explain the significance that the average total cost (ATC) curve has on profit and loss based on each type of market structure. Explore how the ATC curve affects all four market structures and identify whether firms will earn a profit or loss based on the placement of the ATC curve and price.
Your answers must be supported by a minimum of two sources, be in current APA format, and be one-two pages in length.
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