QUESTION 1Discuss the long - run average cost curve of a firm and how it represents

QUESTION 1

Discuss the long - run average cost curve of a firm and how it represents

returns to scale.

Substantiate the answer with the aid of diagram. 

QUESTION 2

Depending on the characteristics of the market structures, firms will experience different profit maximizing positions in the short-run and long-run "In terms of this statement, discuss the profit maximizing positions of a monopolistically competitive firm and monopolist in the long-run.