need explanation

1. The diagram below illustrates the Marginal cost, MC, average total cost, ATC, average variable cost curve, AVC and industry demand curve for a perfectly competitive industry. Individual Firm Industry 30 AIC 30 20 20 10 10 `Dannd 30 1000 2:00 3000 3000 3070 quality of output, q quitity of art, Q a) There are 150 identical firms in the industry. Draw in the industry short run supply curve. b) What is the market equilibrium price and Industry quantity of output? P = Q = () What is the individual firm profit maximizing quantity of output? q = d) What is the value of profits for the individual firm? e) Shade in the area representing profits on the firm diagram. 2. For the diagram to the right, calculate the value of price elasticity of demand over the price range from $30 to $20. Multiple Choice: Circle only one answer and transfer your answer to the scantron sheet. 1. Refer to the individual firm diagram for a firm in perfect competition, if the firm producing 9 units of output, what is the total cost? A) $so. B) $30, C) $3.33. D) $270. E) 590. Individual Firm MC 2. Refer to the individual firm diagram for a firm in perfect competition, if the firm producing 3 units of output, what is the average fixed cost? A) $25. ATC B) $10. 30 C) $60. D) $20. 20 E) $6.67 AMC 3. Refer to the individual firm diagram for a firm 10 in perfect competition, what is the total fixed cost? A) Sso. 8 10 B) SGO. quantity of output C) $20, D) $25. E) $30. 4. Refer to the individual firm diagram for a firm in perfect competition; what is the firm's shut down. price? A) $10. BJ $20. C) $25. D) SS. E) $8. 5. Refer to the individual firm diagram for a firm in perfect competition; if the market price is $35 what is the firm's profit maximizing quantity of output? A) 7 units of ourput. B) 6 units of output. C) 5 units of output. D) 4 units of output. E) 2.2 units of output. Refer to the individual firm diagram for a firm in perfect competition; if the market price is $35, the firm A) earning positive profits, B) earning negative profits. C) earning zero profits