A competitive firm is selling its product. The price for its product is $8.

Total product	TFC	TVC	TC	AFC	AVC	ATC	MC	TR	MR	Profit
0	$8	$0	8							-8
1	$8	$15	23	8	15	23	15	8	8	-15
2	$8	$20	28	4	10	14	20	16	8	-12
3	$8	$29	37	2.67	9.67	12.33	29	24	8	-35
4	$8	$48	56	2	12	14	48	32	8	-24
5	$8	$83	91	1.6	16.6	18.2	83	40	8	-51
6	$8	$140	148	1.33	23.3	24.67	140	48	8	-100
7	$8	$225	233	1.14	32.1	33.39	225	56	8	-177
8	$8	$344	352	1	43	44	344	64	8	-288
9	$8	$503	511	0.89	1.67	56.78	503	72	8	-439
10	$8	$708	716	0.8	1.5	71.6	708	80	8	-636

a. At what price andoutput level will the above firm maximize its profit or minimize its loss? Should this firm continue to sell in the short run? Should it continue to sell in the long run? Explain your answer.

b. Based on the table, what is the important relationship between ATC and MC? Also, explain why AVC and ATC are U-shaped.