The graph represents the cost structure of a perfectly competitive firm where the market price is $2.

1. Find this firm's profit maximizing point of production.
2. How much profit is this firm earning at that quantity?
3. Will this firm shut down or continue in the short run?
4. If this firm is representative, how will the market react to this profit level in the long run? What will P_e^LR be? How do you know?