1. Fill in the table below for a competitive firm that can sell its product for $7 a unit.

(a) What quantities will this firm produce? Why?

(b) At that quantity level, what profits or losses will this firm make?

(c) Is this market in long-run equilibrium? Why or why not?

(d) In the short run, at what price would this firm break even? At what price

would the firm shut down? Explain briefly.