C. Should this firm produce in the short run? Why or why not? D. Will this rm earn a prot or incur a loss? Explain. 2. Assume that in a perfectly competitive market, a firm's costs and revenues are: Marginal Cost = average variable cost at $20.00 Marginal Cost = average total cost at $30.00 Marginal Cost = marginal revenue at $25.00 *These relationships are where MC crosses each respective curve (picture the graph...or sketch it) A. How will this firm determine the prot maximizing level of output? Explain. B. What price will this rm charge? Explain how that price is determined