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Use the graph to answer the free-response question. Show any calculations and be sure to label your response. MC ATC AV (3 Price in 1+1-

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Use the graph to answer the free-response question. Show any calculations and be sure to label your response. MC ATC AV (3 Price in 1+1- 15 IR 12 Quantily Assume that the firm above operates in a perfectly competitive market. . If the shortrun market price is $2, how man}:r units will the prot-maximizing firm above produce? . Assume the market is in short-mn equilibrium and this firm is earning normal prots. 1What must be the market price? . If the market price in the short run is $5, Iwhat will this rm's total revenue be? . Explain how the short-run price from part (c) could move to the longrun equilibrium price level. . If the government instituted a lumpsum tax, which of the curves above would move, if any? mane-m {5 points}

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