4. Draw the demand, MR, AT C, AVC, and MC curves for a perfectly competitive rm who is currently operating and making a prot. Be sure to carefully label the axes and all curves. Also, label the price the rm will charge (P*) and the quantity the rm will produce (q). a) Now, shade in and label the profit for the rm on your graph. b) In the LR, will other rms want to enter the market or exit the market? Assuming other rms do this, will the market supply curve increase, decrease, or stay the same? Will the equilibrium price increase, decrease, or stay the same? c) On your graph of the individual rm, draw the effect of any entry or exit [label any shifted curves andfor price with a ' symbol) and be sure to label the new profit-maximizing output of the lm ((1'). As a result, will the firm produce more, less, or the same amount of output? 'Will the profit of the firm increase, decrease, or stay the same