Macroeconomics

Use the graph to answer the free-response question. Show any calculations and be sure to label your response. MC $10 - - ATC AVC Price $6 $4 $2 10 14 15 18 22 Quantity Assume that the firm above operates in a perfectly competitive market. a. What will this firm's total revenue be if the market price is $4? b. Assume the market is in short-run equilibrium and this firm is earning normal profits. What must be the market price? c. If the short-run market price is $6, will the firm produce or shut down? d. How would the price from part (c) move to the long-run equilibrium price level? Explain. e. If the government instituted a lump-sum tax, which of the curves above would move, if any