Consider a perfectly competitive market where the typical rm has a total cost of TC(q) = q2 + l8q + 64. 1. At the rms, what is MC(q), AVC(q) and ATC(q)? 2. In a diagram, draw the rm's MC, AVC and ATC curves. 3. What is the typical rm's break-even price (where p 2 MC(q) 2 ATC(q))? 4. Suppose that the market price is p : $50, what is the rm's prot maximizing quanty? 5. At that price, what is the typical rm's prot? Suppose that in the short run, 28 of the xed cost is sunk, 6. What is the shut-down price? Suppose investors could enter the market using a different technology summarized by the cost function TC'(q) = q2 + IUq + 144. 7. What is the breakeven price of this new type of rm? 3. At the current market price, what is the profit maximizing quantity of this new type of rm? 9. Which type of rm would earn a higher prot, the typical one or the new one? Suppose that in the short run at the new rm 80 of the xed cost is sunk. 10. During a down-turn, as demand and price temporarily drop, which type of rm is more likely to remain open