What is the relationship between price and average total cost when a firm operates with an economic profit, takes a loss, or breaks even? Illustrate, in the accompanying graphs, the relationship between an individual firm’s demand curve and total cost curve in the following situations.

a. A purely competitive firm in the long run

b. A monopolist earning an economic profit

c. A purely competitive firm operating with a loss

d. A monopolistically competitive firm in the long run

e. A monopolistically competitive firm operating with a loss

f. An oligopolist pricing at the kink in its demand curve and earning an economic profit

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29 $ d. 0 ATC Q ATC o ATC ATC 9 ATC ATC