Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. The following graph shows Hi-Tech's initial marginal-cost curve (MC1) and average-total-cost curve (ATCi ) before the new technology, and its marginal-cost curve (MCy) and average-total-cost curve (ATC2) after the new technology. (?) ATO ATC Price of Books MC:2 Quantity of Books Now suppose the patent expires and other firms are free to use the technology. Which of the following statements are true about what happens in the long run? Check all that apply. All firms' average-total-cost curves decline to ATC2. O All firms make positive profits. O The market price falls to Pz.13a Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. O The price of fertilizer must be greater than marginal cost. O The price of fertilizer must be greater than average variable cost. O The price of fertilizer must be greater than average total cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. (?) Firm Market Demand SA Price Price and Costs LAV MC Quantity QuantityIf firms in the market are producing output but are currently making economic losses, illustrates the present situation for the typical firm in the market, and indicates the corresponding supply curve. Assurning there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. O The total quantity supplied to the market will increase. The price of fertilizer will increase. O The quantity supplied by each firm will decrease. Average total cost will decrease. Marginal cost will increase.13b . Profit maximization and shutting down in the short run The following graph plots daily cost curves for a firm operating in the competitive market for jumpsuits. (?) 50 PRICE (Dollars per jumpsuit) AVC MC 2 10 12 14 16 18 20 QUANTITY (Thousands of jumpsuits) Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.)Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per jumpsuit) (Jumpsuits) (Dollars) ( Dollars) (Dollars) (Dollars) 12.50 135,000 27.50 135,000 45.00 135,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $135,000 per day. In other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the firm to shut down-is per jumpsuit