a. According to the diagram, what is the current market-clearing price facing thisproducer, and how many units are being produced at this price? (1point) Please provide the reasoning for your answer. (1 point)b. At the indicated market-clearing price, what are the economic profits or lossesof the firm (calculate the value)? How do you know? (3 points)c. Suppose the market-clearing price falls to $28. What are the economic profits or losses of the firm (calculate the value)? Should the firm continue to produce in the short run to maximize profits (or minimize losses)? Explain. (3 points)d. Suppose the market-clearing price falls to $12. Should the firm continue to produce in the short run to maximize profits (or minimize losses)? Explain. (2 points)

0:25:43 The diagram below applies to a perfectly competitive firm. MC ATC 35.00 MR 30.00 28.00 25.00 AVC 20.00 Price and Cost (S per unit) 17.00 14.00 12.00 10.00 O 27 35 40 50 60 65 68 85 Quantity (units) not marlent-clanring nin far