For this analysis, assume the wheat market is perfectly competitive, demand is downward-sloping, supply is upward-sloping, and production technology results in traditional U-shaped ATC and AVC.

Finally, for all questions, assume market price is always greater than the minimum of the AVC.

Assume that prior to the outbreak of the war in Ukraine, the wheat market was in Long Run Equilibrium (LRE).

• Using our side-by-side graph methodology (with market on the left and individual firm on the right), graphically depict the market equilibrium P₀ and Q₀, the optimal output of an individual firm representative of the other firms in the industry at this LRE (labeled as q₀), and the individual firm's profit ₀, if any (shaded and clearly labeled).
• Reminder: Be sure to label all relevant points and axes.