Question: I don't know the steps for this questions. b) Assume the following data pertains to a firm in a perfectly competitive industry: - Market price

I don't know the steps for this questions.

b) Assume the following data pertains to a firm in a perfectly competitive industry: - Market price = $2.00 - Firm's output: 100 units - Firm's ATC = $1.60 - Firms' ATC of $1.60 at an output of 100 units is the minimum ATC - Assume the ATC, AVC, and MC curve are U-shaped i. Do you believe the firm is making an economic profit why or why? ii. Do you believe the firm can increase its profit? Would you recommend an increase or decrease of output

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