Use graph for a pexfectly competitive firm to answer the following questions. Make sure you show any necessary calculations and explain your answers for all parts of this question.
A. What is the minimum price that the firm would continue producing for in the short-run? Show this graphically. Why is this the minimum price the fmn would continue producing for in the short-run?
B. Draw the marginal revenue curve for a price of $30. What is the profit maximizing or loss minimizing output level? Show this graphically.
C. What is the average total cost at this output level? Show this graphically.
D . What is the total revenue? Total cost? Total profit or loss?
E. Assuming the costs include both implicit and explicit costs, would you expect the industry to expand, contract, or remain in long-run equilibrium when the price is $30? Explain why you expect this to occur.