(a)[12]
Analyse, with the help of a diagram, the likely shape of the long-run average cost curve of a firm and explain whether it would probably be the same for small and large firms.
(b)[13]
Two airlines were recently accused of colluding to take advantage of the consumer. An investigation was launched to find out whether this had taken place. Discuss why collusion can happen in one market structure but not in another market structure.