Assume that a firm is operating in a market which is perfectly competitive and the firm in this market has the following total cost and marginal cost functions:

TC: 500+0.1q

MC: 0.2q

a. Write down the equations for firm's average total cost, average variable cost and average fixed cost.

b. State the profit maximizing condition for a perfectly competitive firm and find the profit maximizing output of firm if the equilibrium price of the product in the market is 20$/unit

.c. Calculate total fixed cost, total variable cost, total cost, total revenue and the profit of the firm at the profit maximizing output

d. What would happen to the firm in the short-run and in the long-run if the price of the product decreases to 10 $/unit?