The diagram below applies to a perfectly competitive firm. Price and Cost (S per unit) 0 27 3540 50 6065 68 85 Quantity (units) a. According to the diagram, what is the current market-clearing price facing this producer, and how many units are being produced at this price? (1 point) Please provide the reasoning for your answer. (1 point) b. At the indicated market-clearing price, what are the economic profits or losses of the firm (calculate the value)? How do you know? (3 points) c. Suppose the market-clearing price falls to $28. What are the economic profits or losses of the firm (calculate the value)? Should the firm continue to produce in the short run to maximize profits (or minimize losses)? Explain. (3 points) d. Suppose the market-clearing price falls to $12. Should the firm continue to produce in the short run to maximize profits (or minimize losses)? Explain. (2 points) The table below shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. Units of Total Labour (per |Output VvC |[TC MC AFC |AVC ATC day) (per day) Using the information provided, compute all of the short-run costs for this firm and complete the table (6 points). Please write down the formulae (2 points) and clearly show each cell's full calculation step by step (2 points) to get full marks. Please