How do I answer questions 1-13?

8:53 PM Tue Mar 9

8:53 PM Tue Mar 9 Home Calibri Regular (l Perfect Competition Perfect Competition Assignment (revised) Insert Draw Layout Review View Q 820/0 e 7. 8. 9. ATC Avc Calculate the dollar value of the loss this firm is experiencing. Apply the shutdown rule to this firm. Should it shut down or continue to operate? Explain. Explain how this industry will adjust to restore long run equilibrium. Be sure to identify the changes that will occur in the market and at the firm. Use the graph below to answer questions 10-12. TC Quantity 10. Highlight the areas of loss for the firm. 11. What is the significance of Point A and Point B? 12. What does the area between point A and point B represent? 13. Suppose the government imposes an excise tax on the production of a good produced in a perfectly competitive market that was in long run equilibrium. Draw side by side market and firm graphs showing the short run impact on the firm and the market.