Consider a firm in a perfectly competitive industry. The firm has just built a plant that cost $20,000. Each unit of output requires $3 worth of materials. Each worker costs $5 per hour.

a. If the market price is $9.25, how many units of output will the firm produce?

b. At that price, what is the firm's profit or loss? Will the firm continue to produce in the short run? Carefully explain your answer.

c. Graph your results. (This is the most important part, no graph no helpful rating!)

Number of Worker Output Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost Hours (Q) (TFC) (TVC) (TC) (MC) (AVC) (ATC) 0 0 25 100 50 150 75 175 100 195 125 205 150 210 175 212