Myrtle is a beekeeper and has the following costs for producing gallons of honey.

Suppose that Myrtle operates in a perfectly competitive market, suppose the market price is $8.

a. What is Myrtle's profit maximizing output level? What is her maximum profit?

b. According to the cost data in question #5, what is the lowest price at which Myrtle would be willing to produce honey in the short-run?

c. Is Myrtle in long-run equilibrium? What would you predict will happen to the price in this market - will it rise, fall or stay the same? Why?