(a)What is the quantity of output that this firm will produce? Explain your answer (2 marks)

(b) Compute the profit/loss the firm is making at the quantity found in (a). Show all steps. (2 marks)

(c)Compute the Fixed Cost of this firm. Show all steps (2 marks)

(d) Do you think this situation can represent a long-run equilibrium of the competitive industry in which this firm operates? Why? (2 marks)

(e) Suppose that a new government safety regulation leads to a $1000 increase in the fixed cost of this firm. Which curves (if any) will shift in the above graph? Will the output of the firm increase, decrease, or stay the same? Explain your answer. (4 marks)

Consider the following figure showing the cost and marginal revenue curves for a protmaximising rm in a perfectly competitive market. The market price is $20. MH 750 1,100 1.350 1,300 Quantity