Note : the answer should be typed.

The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. Price/Cost a. In what market structure is this firm operating? How do you know? $50 MC $40 ATC AVC $30 $20 b. What is the firm's profit-maximizing P - MR output level? $10 What price will the firm charge? 10 20 30 40 50 Quantity c. Will this firm produce in the short-run? How do you know? d. If the firm produces in the short run, what is its profit or loss per unit? (use a negative sign to indicate losses) What is its total profit or loss? Calculate and label the area on the graph. e. What will happen to this firm in the long run? What will happen more broadly for the industry to reach long run equilibrium? (describe briefly) f. Is the long-run equilibrium outcome efficient? g. Is this example realistic? In other words, do real-world market follow this structure? Are most real-world markets efficient? What characteristics would you expect to be different in the real world? (a short paragraph of 3-4 sentences is fine)