1. Determine whether the firm is operating in the short or long-run? Next, provide a brief explanation to support your answers a. AVC=$3.00; AFC= $2.00; P= $5.00 b. AVC=$3.00; AFC= $2.00; P= $3.00 c. AVC=$3.00; AFC= $2.00; P= $8.002. Assume that the profit-maximizing output is 800 units when AVC = $6.00; Price (P) =$7.50; ATC=$9.00 for a perfectly competitive firm. a. Compute TVC? b. Compute TFC? c. Compute TR? d. Compute TC? e. Compute the firm's losses or profits? f. Should the firm continue in business or shutdown? g. Explain your answer to question (f)?3. With the aid of appropriate explain in two or three paragraphs the role played by entry and exit behavior of perfectl',l competitive firms in guaranteeing zero economic profits in the longrun