Assume the market price of gizmos is $40. Use the cost curves below to answer the questions. 1. If the price is $40, what is the profit maximizing quantify for your firm? Price $60- MC $50 2. Calcutate the total cost at the profit maximizing $40 AR quantity. $30 $20 3. Calculate the profit or loss at the profit maximizing quantity. $10 6 10 11 . 12 4. How much profit will you earn if you increase your Quantity price $10 higher than the market price? Explain 0 profit. Demand curve for idivictual firm in perfect competition would be horizontal, prefectly elastic, An increase in price would lead consumers to buy 5. What is the profit maximizing price and quantity in the long-run? Remember, in the long-run a perfectly from other firms, and we will not make competitive firm will earn a Normal profit. cry sales . 6. If price is $40, what is the marginal revenue for the 9th meaning that we have to take the equalibrium price unit? if the industy 7. Draw the average revenue curve on the graph above. 8. Assume that the market price for gizmos fell to $20 and that an increase in your firm's fixed costs caused your ATC to increase. If your firm's fixed costs are $150.Should you continue to produce or shut ATTC = AUCTAF down in the short run? Explain. Use the cost curves below to answer the question. A lot of partial credit here, so show all work and write neatly. Price $6 MC ATC $50 $40 $30 $20 $10 AFC 11 $ 6 8 9 10 12 Quantity