A perfectly competitive firm currently producing 100 units of output has ATC= $6 and AFC = $4. The market price is $3 and is equal to MC.Is the firm currently operating in the short-run or the long-run? Explain why.Discuss if the firm is currently maximizing profits (or equivalently minimizing losses)? Explain if shutting down the business in this current situation would be beneficial for the firm.If firms break even in the long run and earn zero economic profits, would they stay in the business? Explain why.(5 Marks)