Consider the following diagram that depicts the demand- and cost information of Firm A that operates in a perfectly competitive market. P/C (R') 30 24 18 15 10 7 4.1 4.3 3 5 6 8 4.4 10 MC ATC At which price and output level will Firm A maximise profit? Output AVC MR = D 4.2 Calculate each of the following at profit maximising output level for Firm A. 4.2.1 Total revenue 4.2.2 Total cost 4.2.3 Profit or loss 4.2.4 Total variable cost 4.2.5 Total fixed cost. Keeping all factors constant (ceteris paribus), use the values on the diagram to complete the following sentences: 4.3.1 If the price falls below R, Firm A will have to shut down and exit the market. R_ 4.3.2 Firm A will make a normal profit over the long run at the price of R 4.3.3 Firm A will achieve allocative efficient level of output over the long run by producing units of output. How does a perfectly competitive firm and a monopolistically competitive firm differ with regards to the nature of the product that the firms produce.