Luigi's pizza is a price taker. The company faces a fixed cost equal to 10. The marginal cost is given by the function MC(Q) = 2+2Q. Suppose that the market price P =20. (i) Compute the profit maximizing quantity. At this given quantity, please compute ATC. How would you compute profits using P, ATC, and Q. (ii) Would this quantity Q be changed for a fixed cost = 15? (iii) Assume that the fixed cost is now considered a sunk cost. What is the shut down point? (iv) For a fixed cost equal to 10, what would be the price at which firms will be indifferent to either enter or exit the industry. (v) Why do we say that under perfect competition the demand is perfectly elastic? (vi) And why do we say that in the long-run the suply will be perfectly elastic