Please provide and explanation too so that I can understand the reason why

Which of the following is true of perfectly competitive markets? Select one: 0 a. Substantial barriers exist for firms that wish to either enter a market, or exit from the industry. 0 b. If a rm sells a product that is superior in quality or efficiency, it can command a higher price than its competitors. 0 c. The revenue created by the sale of one more unit of the product is equal to the market price. 0 d. Firm demand is perfectly inelastic, or vertical, at the market equilibrium price. Use the graph below to answer the following four questions: 3 SMC A TC AVC Price and cost (dollars) b! ti 100 200 300 400 500 600 700 800 i I l I, q (A graph with quantity on the horizontal axis and price and cost in dollars on the vertical axis, showing marginal cost (M 0), average total cost (ATC'), and average variable cost (AVC). MC increases at an increasing rate as quantity increases. ATC is U-shaped and starts at about (200 units, $5), decreases to its minimum at (500 units, $3.90), then increases to a rightmost point at about (750 units, $5). AVC is U shaped and starts at about (100 units, $3), decreases to its minimum at (300 units, $2.40), then increases to a right-most point at about (750 units, $4). MC intersects AVC and ATC at their minimum points: at about (300 units, $2.40) for AVC and at about(500 units, $3.90) for ATC. If market price is $4.50, the firm should produce about units of output; if it does so, the firm will Select one: Q a. 700', break even 0 b. 500; earn a shortrun loss. 0 c. 575; earn positive economic profit. 0 d. 300, take a loss that requires the firm to shut down in the short run. If the market price is set at $2, a firm in this market would Select one: 0 a. produce about 250 units and earn profit since total cost exceeds marginal cost at that output. O b. continue operating and produce about 250 units, which results in a shortrun loss that will eventually reverse itself. 0 0. take a loss that exceeds variable cost, causing the firm to want to shut down in the short run. 0 d. increase its output to 400 units to recover lost revenue. If the short-run market price is $5, in the long run the price would be expected to Select one: 0 a. rise because the short-run losses will cause some firms to exit the industry. O b. fall because the temporary profits will decrease the market supply, since the profit of existing firms will be concentrated only among a few sellers. 0 c. rise because the temporarily high price will discourage consumers in the longrun, reducing supply. Q d. fall because the short-run profit encourages entry of competing suppliers, which pushes the market equilibrium price down. What is the shutdown price, and what is the lowest level of output this firm would produce in the short run? Select one: 0 a. $4.50 and 300 units. 0 b. $2.50 and 300 units of output. 0 c. $3.80 and 500 units of output