1. The following table lists the total and variable costs of shortrun production from question 1 in Exercises #6. Suppose that a perfectly competitive rm faces these costs a price of P = $26. Quantity of Output Total Variable Costs Total Costs 0 $ 0 $30 1 20 50 2 30 60 3 48 78 4 90 120 5 170 200 (a) Plot the AVG, ATC, M C , M R, and (1 curves on a graph and show where the rm should produce to maximize its prots (or minimize its losses). (b) Construct a table showing the P, TR, TC, MR, M C and prots for a competitive rm at each potential level of output. (c) Indicate how much a rm should produce if the price changed to (i) P = $42. (ii) P = $18, and (iii) P = $12.50. Note that if the rm shuts down, it produces q = 0. (d) Draw a gure showing the short-run and longrun equilibrium 0n the assumption that the rm, but not the industry, is in longrun equilibrium. Assume P = $30, the lowest LAC = $12.50 at Q = 8, the prot maximizing level of output is Q = 10, and LAC = $15 with SATC5 and SMC5 = LMC = $30 when the rm, but not the industry, is in longrun equilibrium. (e) Draw a gure for the rm of part ((1) showing the long-run equilibrium point for the rm and the industry