Homework Eight Show your work and/or briey explain all your answers. 1. The table below shows the market price and total cost for a perfectly competitive rm. Use this information to answer the following questions. Briey exglain your answers. a. We know that this firm can sell one unit at a price of $8. What is the highest price it can charge to sell two units? Three units? Briey explain your answer. b. What is the total revenue associated with the 5th unit? c. What is the marginal revenue of the 2nOI unit? d. Use the prot maximizing rule to nd the firm's profit maximizing output level. e. How much prot is the firm earning at the profit maximizing output level? f. Briey explain why the market in which this rm operates cannot be in long- run equilibrium. Suppose you were hired to analyze this market. Would you expect the price to increase or decrease in the future? Why