1. Why does the competitive company have no market power? 2. Why does profit maximization in the competitive market lead to an efficient outcome in the market? 3. How is the concept of marginal cost related to the supply curve of a competitive firm? 4. Under what conditions does a competitive company produce in the short term while making losses? 5. Why does the long-run supply curve for the industry (the market as a whole) tend to be horizontal? 5. Suppose Alberto and Maritza decide to start a printed T-shirt company. They will produce the same styles that many other vendors offer. Your fixed costs to get started are $60. Variable costs appear in the table below. Each t-shirt sells for $32 Average variable a. Complete de rest of the table: b. Plot the marginal revenue and cost curves. c. How many shirts will they sell? d. Calculate the level of earnings in the short term. e. What do you hope will happen in the long term? (use graphs in your explanation)