Question 1: A) Under what conditions is a market considered perfectly competitive? B) Are all markets in the real world perfectly competitive? Question 2: A) Assume a firm is producing in a perfectly competitive market structure. When will it make sense for a firm to produce a positive amount of output in the short run? B) Assuming it makes sense for a perfectly competitive firm to produce a positive amount of output in the short run. How would this firm choose the output level? (Hint: what is the profit maximizing choice? You could answer this in words only, but a diagram might help direct you to the answer). C) How do parts A and B combine explain the perfectly competitive firm's supply curve?