Can you explain 2. , c , and d briefly

2. A profit-maximizing firm has an average total cost of $4, but it gets a price of $3 for each y sells. What would you advise the firm to do if you knew the average variable costs were $3.50? If price is $3, and AVC ANSWER: Shut down is $3.50 you need to shut down 3. Use the accompanying graph, which shows the marginal cost and average total cost curves for the shoe store, Zapateria, a perfectly competitive firm. ge $100 90 a. How many pairs of shoes will Zapateria produce 80 if the market price of shoes is $70 a pair? NVR ATO ANSWER: 500 Price per pair b. What is the total profit Zapateria will earn if the market price of shoes is $70 a pair? TR - TO ANSWER: 1DOOO PX Q - CATC XQ ) c. Should Zapateria expect more shoe stores to 100 200 300 400 500 600 enter this market? Why?no barriers Pairs of shoes yes to enter ANSWER: d. What is the long-run equilibrium price in the shoe market assuming it is a constant-cost industry? ANSWER 40