Consider a firm that sells its product in a perfectly competitive market where the market price is $4.20 per unit. The firms in the market have identical cost structures and the firm's cost structure is described by the following equations:

TC= 40 + 0.1q² - 0.2q

MC = 0.2q - 0.2

(Question 6 of 8) Suppose consumers' income decreases, and consumers View this good as a normal good. As a result of this event, what quantity should the rm produce to maximize its profit in the short run? (Question 5 of 8) Suppose consumers' income decreases, and consumers View this good as a normal good. As a result of this event, which price is likely to be the market price in the short run? As a result of the event, the current market price in the short run is $320 v . (Question 7 of 8) Suppose consumers' income decreases, and consumers View this good as a normal good. As a result of this event, what is the firm's short run prot at its prot maximizing level of output? Suppose consumers' income decreases, and consumers view this good as a normal good. As the market adjusts to its long run equilibrium, what changes are expected? As the market adjusts to its long run equilibrium. one would expect firms to v the market and this would lead to v in the market quantity and v in the market price. At the market's long run equilibrium, the market price is v the initial market price, and the rm's prot is v its initial profit. a decrease an ambiguous change an increase no change enter leave neither enter nor leave higher than lower than the same as