1. In a perfectly competitive market where there is virtually no product   differentiation, what do you think are the priorities or focus of a   firm? How could a firm increase profits?2. Explain

1. In a perfectly competitive market where there is virtually no product   differentiation, what do you think are the priorities or focus of a   firm? How could a firm increase profits?

2. Explain a situation you have observed (or read about) in which a firm   made a decision considering irrelevant costs or did not consider   relevant costs. What was the outcome of the decision, and what could   have been done differently?