Use the graph below depicting a profit-maximizing, perfectly competitive firm to answer questions 1 through 5. 1. 2. 3. 4. 5. a. Price $22 $20 $12 $10 Marginal revenue is equal to $10 b. a. b. $4 C. d. 0 $12 Total fixed cost (TFC) is equal to $400 b. a. $480 40 C. At the profit-maximizing level of output, total cost (TC) is equal to revenue (TR) is equal to a. $1200; $720 b. $400; $400 C. $880; $800 C. 60 $20 MC C. 90 $720 d. d. /ATC Quantity d. AVC Demand $22 and total This firm is experiencing an: economic loss of $80, and should shut down production to minimize losses. economic loss of $120, but should continue to produce to minimize losses. economic profit of $0 (normal profit). economic profit of $80. $1200; $1200 $1200 This firm minimizes losses by not producing (shutting down) if price falls below: b. $10. a. $4. $12. d. $20.