A Firm named Wilsonoperates in a constant cost industry in perfectly competitive marketand is also earningpositive economic profit essentially.

1. Please describe how does Firm Wilson concords / determine its profit-maximizing price? Explain your answer in a full descriptive manner.
3. Makelabeled side by side graphs for Firm Wilsonand essentially the market it operates in. Please label the axes and :
4. Firm's quantity of output (Qe)
5. The firm's ATC
6. The market quantity (Q_E) and market price(P_E)
7. Please fullyshade the area of the firm's profit eloquently.
8. At the market moves to a long run equilibrium, please determine if the following remain constant, increase, and / or decrease:
9. The market equilibrium price :
10. The market equilibrium quantity :
11. For this question please assume that theproduct that Firm Wilson Produces possess apositive externality. On the market graph from portion [b], please draw the MSB [marginal social benefit].
13. So, wouldthe unregulated market essentially make /produce less or morethan that of the socially optimal quantity?
14. When the market is unregulated and in long run equilibrium, please shade the area of DWL [deadweight loss] caused by theexternality.
15. i. Why would it be this area?