A firm named Wilson operates in a constant cost industry in perfectly competitive market and is also earning positive economic profit.

a. How does firm Wilson determine its profit-maximizing price?Explain your answer in a full descriptive manner.

b.Make labeled side by side graphs for Firm Wilson and essentially the market it operates in. Please label the axes and...

i.Firm's quantity of output (Qe)

ii.The firm's ATC

iii.The market quantity (QE) and market price (PE)

c.Please fully shade the area of the firm's profit for part b.

d.Asthe market moves to a long run equilibrium, please determine if the following remain constant, increase, and / or decrease:

i.The market equilibrium price :

ii.The market equilibrium quantity :

e.For this question please assume that the product that Firm Wilson Produces possess a positive externality. On the market graph from portion [b], please draw the MSB [marginal social benefit].

f.Would the unregulated market essentially make / produce less or more than the socially optimal quantity?

g. Please shade the area of DWL [deadweight loss]caused / pushed by the externality when the market is in long-run equilibrium andunregulated.