Suppose you are the production manager of a small perfectly competitive firm making a single product. Use concepts and graphs from week 5 to answer the following questions. (i) Explain whether each of the following factors does or does not affect the profit maximizing level of output your perfectly competitive firm makes. (ii) Is your answer different in the short run compared to the long run? Explain why/how.

1. Rent for the firm's space increases. (graph required)
2. Employee Wages increase
3. Health insurance premiums paid by the employer increase (graph required)
4. Interest rates go down on the loans held by the firm.
5. Demand for the firm's product increases.