Use the figure above to answer the following questions.

a.How can you determine that the figure represents a graph of a perfectly

competitive firm? Be specific; indicate which curve gives you the information and how you use this information to arrive at your conclusion.

b.What is the market price?

c.What is the profit-maximising output?

d.What is total revenue at the profit-maximising output?

e.What is the total cost at the profit-maximising output?

f.What is the profit or loss at the profit-maximising output?

g.What is the firm's total fixed cost?

h.What is the total variable cost?

i.i Is the industry in a long-run equilibrium?

j.If it is not in long-run equilibrium, what will happen in this industry to restore long-run equilibrium?

k.In long-run equilibrium, what is the firm's profit maximising quantity?