1. $Price unit MC ATC 18.00 12.00 11.0 5.00 100 350 QuantityThe diagram above represents a perfectly competitive firm that faces a demand curve d. Answer the following questions. Show all calculations. (25 points) a. How many units will this firm produce to maximize profit? (Spt) b. What is the firm's total profit? [Spit) C. Assuming no changes in the costs of production, in the long run how much will this firm produ and at what price? (spt) d. At what price will this firm break even? [Spit) e. At what price should this firm shut down? (5pt) 2. SPricelocal per unit MC ATC 23 2 2 Demand 01 Quantity The diagram above shows a monopolistically competitive firm in the long run. Answer the questions below. (25 points) a. Ifthe firm is currently producing and selling Q1 units, what is the price being charged?' (5pt) b. What arca in the diagram represents the total fixed cost of production? (Spt) C. What arca in the diagram represents the total variable cost of production? (5pt) d. What arca represents the profit or loss? [Spot) 4. What should the firm do regarding price and/or quantity to minimize its losses?'(Spt)and cost per unit P P Quantity The diagram above represents a monopolistically competitive firm. Answer the questions below. (25 points a. Is this firm operating in the short run or long run? How do you know? (Spt) b. What is the firm's accounting profit? Explain. (5pt) C. What is the productively efficient output for the firm?' (Spt) d. Economies of scale are maximized at which output loved Explain [Spit) C. What is the allocatingly efficient output for the firm?' Explain. (5pt) ATC - MC4. The diagram above represents a monopolist firm. Answer the following questions: (25 points) a. What price will this firm charge and what quantity produced in order to maximize profit? Exp Your Brewer. (5pt] b. If this firm becomes regulated and the regulatory agency want to achieve economic offidenc what will be the price and quantity? Explain your answer. (Spt) c. If the monopolist operates at the economic offidency level, will he be making a profit or loss Explain. [Spt) d. Suppose the regulatory agency wants the monopolist to charge a price that matches what it costs to produce a unit of the good/service. What price will this be and what would be the quantity produced? Explain. [Spt)] 2. At the price ceiling of $30 what would be the profit/loss of the monopolist? (Spt)