The next two questions relate to individual firms in a competitive market. Note this question is worth 2 points. Draw the curves we'd use to determine the profit-maximizing quantity for a firm in a competitive market (careful - draw the one for a firm in a competitive market, not one with pricing power!). Draw it such that we'd expect that firms will want to enter the market. 1/2 point each for: 1. Drawing the AC, MC, and D curves properly (make AC and MC intersect properly or you'll lose this 1/2 point) 2. Correctly finding the profit-maximizing quantity Q* and labeling it 3. Correctly drawing and shading in profit (this will require properly finding the AC value). 4. Doing steps 1-3 in such a way that firms will want to enter the market