1 Answer the following questions, with reference to the diagram below, for a profit-maximizing firm operating under perfect competition. MC SAATC Cout and women ($ Output a Explain which level of output represents profit maximization for the firm. b Explain which level of output represents the most economically efficient. With reference to the diagram, explain whether the profit-maximizing firm earns economic profit. a) Define the term "collusive oligopoly. [2 marks] b) With reference to the MC AC diagram, explain the equilibrium position of the Costs and revenues () oligopolistic firm. [2 marks] AR -D Output 5) The diagram represents a firm in monopolistic competition. a) Explain why the diagram represents the firm's short-run position as MC/ ATC opposed to its long-run position. [2 10.0 marks] 8. Costs and revenues ($) b) Explain which level of output the AR - D monopolistically competitive firm operates at in the short-run. [2 marks] c) Calculate the profit or loss made by MR the monopolistically competitive firm 6 89 11 in the short-run. [2 marks] Output (000)