The following graph illustrates the Demand, Marginal Revenue, Marginal Costs, Average Total Costs and Average variable Cost curves for a firm in a perfectly competitive market.

1. What is the Optimum level of the output for the firm?
2. What is the maximum price the firm can charge?
3. At this price and output combination does the firm make economic profit of economic loss? How do you know? Explain your answer.
4. Calculate the economic profit or loss? Show all your calculations.
5. What is the breakeven price? How do you know? Explain your answer.
6. What is the shut down price? How do you know? Explain your answer.