Consider the following graph which reflects the cost structure for a competitive firm:

a$)$ If the price in the market is $$7,$ how much will the firm produce? What will be the amount of profit or loss at this level? $($Show your work.$)$

b$)$ If the price in the market is $$5,$ approximately how much will the firm produce? Approximately what will be the amount of profit or loss at this level? $($Show your work.$)$

c$)$ If the price in the market is $$3,$ how much will the firm produce?

d$)$ What is the most efficient level of production $($what quantity?$)$ Explain.

e$)$ Given the cost structure, what will be the price in the market in the long run?

$3)$ What are the four basic conditions for perfect competition? Can you give an example of a market that approximates perfect competition? What do you observe about the example you gave that makes you identify it as competitive?