Using the Graph provided answer the questions below with respect to the market for DVD's: Price and cost (dollars per unit) 20 16 12 8 0 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) 1. The market consists of 10,000 firms operating in a perfectly competitive industry. If the current market price is $12.00, then the firms are -. (Short Run/Long Run) Choose... currently operating in the $12.00 2. Given the answer in Question #1, calculate the current amount of profits or losses per unit for each firm. 35 $16.00 3. Given a permanent increase in population, the (Demand/Supply) curve in the industry will shift. $3.50 $0.00 4. Given the shift in Question #3, the market will now be produce 35,000 units at a new market price of Supply Long Run 5. Given the answer in #4, each firm will now be producing the quantity of 30 6. Given the answer in Question #4 & #5, as ATC = $12.50 when quantity of the firm is 35, calculate the new current amount of profits or Short Run Demand losses PER UNIT for each firm. 7. Given the answer in Question #6, the firm is now operating in the (Short Run/Long Run). Choose.. 8. Given the answer in Question #7, the (Demand/Supply) curve will continue to shift until the market is producing Choose... 40,000 DVDs. 9. Given the answer in Question #8, the new market price will be Choose... 10. Given the answer in Question #9, each firm will now be producing the quantity of Choose. Next page