Figure 1 is the cost and revenue curves for a perfectly competitive firm.
a. For this firm the profit maximizing output is _____and the profit maximizing price is_____.
b. Calculate is the total profit/loss for this firm.
c. Refer to figure 1 and your previous answers. Will the industry this firm operates in expand or contract in the future? Why or why not?
d. Refer to figure 1 and your previous answers. If these costs curves remained the same in the long run, this firm would produce ___ at a price of _____ in the long run and earn, ______ economic profit.