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In: Economics

1. Please describe the principle agent problem? 2. Why is comprehension of market structure important for...

1. Please describe the principle agent problem?

2. Why is comprehension of market structure important for the decision making of a start up?

3 Given the following three scenarios, when do you produce and why (Note, you are in the short run)?

                1) Market Price above Minimum AC

                2) Market Price between AC and AVC

                3) Market Price is Less than the minimum AVC

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