Q-5 If the firm described in Figure 13-4 is producing 4 units, what would you advise it to do, and why? Q-6 What is wrong with the following diagram? MC What is wrong here? ATC Price - P = MR Profit Quantity Q-7 In the early 2000s, many airlines were making losses, yet they continued to operate. Why? Q-8 If a competitive firm makes zero profit, why does it stay in business? Q-9 If berets suddenly became the "in" thing to wear, what would you expect to happen to the price in the short run? In the long run