Question 4 5 out of 5 points a. Why does the demand curve of a firm operating in a perfectly competitive market horizontal? (1 point) b. The supply curve of a firm operating in a perfectly competitive market is the upward sloping Portion of the average total cost curve. Do you agree with this statement? Why or Why not? (1 point) c. If the price falls below the minimum average variable cost, the firm can still make profit and produce. Do you agree with this statement? Why or Why not? (1 point) d. If the price falls below the average total cost, the firm makes profit. Do you agree with this statement? Why or Why not? (1 point) e. In making output decisions, a firm should produce the putput level for which MR=MC. Do you agree with this statement? Why or Why not? (1 point)