5. [Shutdown Decision ]Because of the pandemic, your local movie theatre is deciding whether to keep their workers employed or whether to lay them off. They are in a long-term rental agreement with the landlord. The firm's current demand curve is $15 per ticket. Your profit maximizing quantity is 200 tickets a week. This is a perfectly competitive market.

a. What is the marginal cost?

b. Your total variable costs are $1,500. Two questions: What is the maximum your rent can be for you to stay in business in the long run given current demand? What is the maximum your rent can be for you to stay in business in the short run?

c. Graph the firm's situation. Include the following curves: Demand, Marginal Cost, Average Variable Cost, Average Cost. Label Producer Surplus.