4 The following diagram shows the cost curves of a firm under perfect competition. MC 12 11 10 9 8 7 6 5 4 3 2 1 0 0 10 20 30 40 50 60 70 80 90 AC 100 Quantity AVC a) How much will the firm produce in order to maximise profits at a price of 8 per unit? b) c) d) What will be its average cost of production at this output? How much (supernormal) profit will it make? How much will the firm produce in order to maximise profits at a price