Part 3 please

Clearly show all Steps and Explanations, 65 Marks Question 2 - 13 Marks In the diagram below, the firm (one of a 1000 in the industry) is operating in a perfect competition market. Add the Price lines on the diagram and complete the questions in Parts 1, 2, and 3. $10 MC ATC CO 8 /AVC Cost per unit NW AU O 1 2 3 4 5 6 7 8 9 10 Quantity (in 1,000s) Part 3 - 3 Marks a) At a product price of $3 how does Marginal Revenue compare to Average Variable Costs? b) At a product price of $3 will it produce any units? If not, why not? c) Now if many firms leave the market because of the low market price how will this affect supply? the market price