Umbrella FRQ Umbrellas are produced by a perfectly competitive, constant-cost industry. In the short run, the equilibrium price is $7 per umbrella and the typical firm is operating with a loss. The typical firm has the total cost function shown in the table below: (2) (b) (c) (d) Daily Output Using a correctly labeled graph, draw the demand curve for a typical firm in this industry. Using the data above, determine each of the following for the typical firm. (1) Total fixed cost (i) The loss-minimizing level of output (iii) The value of losses at the output level you found in part (b)(ii) Explain why the typical firm chooses to operate despite incurring a loss in the short run. If the total cost per day remains unchanged in the long run, what is the long-run equilibrium price for umbrellas? | Daily Output 0 6