Explain the steps please?

20 40 60 80 100 120 140 q (3) Explain how to calculate the prot/ loss of a typical rm in this industry when market price per unit is at $12, $8, $4, and $2. Mark the areas representing these prots/losses in the diagram provided. (6 marks) Answers: Price at $12, Prot = $300; Price at $8, Prot = $0; Price at $4, Prot = -$250; Price at $2, Prot = -$270 (b) For each of the possible market prices given in part (a), explain whether the rm should produce or shut down. Support your argument with numbers. (8 marks) Answers: Produces when price is at $12, $8, and $4, but shuts down when price is at $2 (c) Suppose there are 100 identical rms in this industry, explain how to derive the short-run industry supply curve and plot it in a separate diagram. (Hint: When market price per unit is at $3, $4, $8, $10, and $12) (6 marks) Answers: Market Price (per Quantity Supplied by 3 Quantity Supplied in the unit) Typical Firm Industry 3 40 4000 4 50 5000 8 80 8000 10 90 9000 12 100 10000