1. Answer the questions below using the cost curves for the price-taking firm shown in the following graph: SMC AVC Pale and cou Idolion 1 100 200 300 500 600 700 800 Output a. If the market price is $7 i. Should the firm produce? Why? ii. How much should the firm produce? Why? in. Determine the firm's profit. b. If the market price is $3 i. Should the firm produce? Why? fi. How much should the firm produce? Why? in. Determine the firm's profit. c. If the market price is $1 i. Should the firm produce? Why? if. How much should the firm produce? Why? in. Determine the firm's profit.a. In the short run, what is the minimum price the firm will accept for produce any output? What is the output associated with this price? Explain. c. In the long run, how much output will the firm produce and what price will it receive for it? Explain