Consider thatJust Dessertsis a firm currently operating in a perfectly competitive market.All firms in this market have identical cost structures andJust Desserts'cost structure is described by the following equations:

ATC = (4500/q) + 5q

MC= 10 q

AVC = 5q

The market price is currently $140.

1.What isJust Desserts'profit maximizing level of output?(4 points)

Complete the sentence by entering a numerical value (0.00 is acceptable) in the blank space provided

Just Desserts'current profit maximizing quantity is_____.

2.What isJust Desserts'profit at the profit maximizing level of output?(4 points)

Complete the sentence by entering a numerical value (0.00 is acceptable) in the blank space provided

Just Desserts'profit at the current profit maximizing quantity is$____.

3.What can be said about the current market outcome?(7 points)

Complete the sentences by entering one of the following phrases or a numerical value (0.00 is acceptable) in the blank space provided:

in the first blank space:an economic loss|an economic profit|zero economic profit

in the first blank space:is|is not

in the first blank space:enter|neither enter nor leave|leave

SinceJust Dessertsis earning_______, we can conclude that the market_____in long run equilibrium and firms willthe market.

4.Over what range of prices will Just Desserts earn a positive profit?(6 points)

Complete the sentences by entering one of the following phrases or a numerical value (0.00 is acceptable) in the blank space provided:

in the first blank space:equal to|greater than|less than|not equal to

in the second blank space: a numerical value

Given Just Desserts' cost structure, the firm will earn an economic profit (profit greater than zero) if the market price is_____ _____.