6.Use Figure below, which shows the situation facing Flight Inc., a producer of running shoes, to work Problems 6.1 to 6.3.

(Attached Graph)

6.1 What quantity does Flight produce, what price does it charge, and what is its economic profit?

6.2 In the long run, how does Flight change its price and the quantity it produces? What happens to the market output of running shoes?

6.3 Does Flight have excess capacity in the long run? If the firm has excess capacity in the long run, why doesn't it decrease its capacity?

Price and cost {dollars per pair) L O N) O 50 100 150 200 250 Quantity (pairs of running shoes per week]