The graph attached summarizes the demand and costs for a firm that operates in a perfectly competitive market.

Instruction:Use the nearest whole numbers on the graph when calculating numerical responses below.

a. What level of output should this firm produce in the short run?

units

b. What price should this firm charge in the short run?

$

c. What is the firm's total cost at this level of output?

$

d. What is the firm's total variable cost at this level of output?

$

e. What is the firm's fixed cost at this level of output?

$

f. What is the firm's profit if it produces this level of output?

Instruction:If the firm is taking a loss, enter this as negative (-) profits.

$

g. What is the firm's profit if it shuts down?

Instruction:If the firm is taking a loss, enter this as negative (-) profits.

$

h. In the long run, should this firm continue to operate or shut down?

$ 48 44 - MC ATC 40 - 36 32 D'=MR 28 24 - AVC 20 - 16 - 12 - AFC 8 - 4 2 3 4 5 6 8 9 10 11 Quantity