A competitive market is characterized by many buyers and sellerstrading identical products, with lit
A competitive market is characterized by many buyers and sellerstrading identical products, with little ability to influence marketprices. With nearly identical products and no influence over marketprices, how do businesses compete with each other? Imagine that you are going to start your own small business. Howwill you maximize profits and stay competitive in the market?Describe your business and use the concepts from this module andearlier modules to discuss the following: What fixed and variable costs would you incur? How will you determine the price for your product? How much product you would produce? Provide an example of one situation that would cause you to shutdown production temporarily. Explain your answer using an equationwith sample numbers. Provide an example of one situation that would cause you to exitthe market permanently. Explain your answer using an equation withsample numbers. . . .