Consider the knowledge you have gained after studying all the different type of market structures.You are now in the position of being able to consult for businesses.Suppose you take on the case of advising the business whose cost curves are defined in the figure shown.Using this information, answer the following questions.

Show full calculations.

- Assume that the firm is producing at the quantity that maximizes profit.Calculate the amount of profits or losses the firm is making at this level of output.

- What advice would you give this firm for the short run and then for the long run?