Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer.

Assume that Jasmine is a typical firm that produces and sells T-shirts in a perfectly competitive constant-cost industry. The market is currently in long-run equilibrium. The market price is $5, and Jasmine's marginal cost at each level of output is listed in the table below.

Quantity of Output	Marginal Cost
0	0
1	2
2	3
3	4
4	5
5	6
6	7

(a) What is Jasmine's profit-maximizing quantity of output? Explain.

(b) Draw a correctly labeled graph for Jasmine, and show Jasmine's total revenue at the profit-maximizing quantity, shaded completely.

(c) Now assume consumer demand for T-shirts increases. What will happen to the number of firms in the market in the long run? Explain.