f) Is the long-run equilibrium outcome efficient?

g) Is this example realistic? In other words, do real-world market follow this structure? Are most real-world markets efficient? What characteristics would you expect to be different in the real world? (a short paragraph of three or four sentences is fine)

2} Unit 2: Producer Theory (10 points) The marginal costs (MC), average variable costs (AVG), and average total costs [ATE] for a rm are shown in the gure below. Pr' 3. in what market structure is this rm ICEICOSI operating? How do you lmow'? $50 $40 $30 320 b. What is the rm's prot-maximizing output level? 31 D What price will the rm charge? 0 'ICI 2U 30 40 50 Quantity c. Will this rm produce in the short-run? How do you know? d. If the rm produces in the short run, what is i13 prot or loss per unit? [use a negative sign to indicate losses) What is its total prot or loss? Calculate and label the area on the graph. Econ 221 P55 Spring 2023 e. What will happen to this rm in the long run? What will happen more broadly for the industry to reach long run equilibrium? [describe briey)