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1. Having in mind that Firm C operates in a perfectly competitive market in a constant-cost industry and is earning positive economic profit, answer the following questions fully :

a. Completely explain how does Firm Cdetermine its profit-maximizing price?

b. Please fully and correctly draw a labeled side-by-side graphs for Firm C and the market this lastoperates in. Essentially,please have in mind to label the axes and all of the following things :

i. The Market price (P_E) and market quantity (Q_E)

ii. The firm's quantity of output (Qe)

iii. The firm's ATC [average total cost]

c. Please completely shade the area of the overall firm's profit.

d. Accordingly, determine whether the following things decrease, increase and / or remain constant as the overallmarket moves to long-run equilibrium:

i. The market equilibrium quantity

ii. The market equilibrium price

e. Draw the MSB [marginal social benefit]on the market graph from part (b). All by assuming the product that Firm C produces has a positive externality.

f. Eloquently, willthe unregulated market produce less or morethan the socially optimal quantity?

g. Please shade the area of DW [deadweight loss] caused by the externality when the overall market is in long-run equilibrium and unregulated.