Perfect Competition Suppose the total cost function for a firm in perfect competition is given by, TC = 18 + 8q + 3q?, where q is the quantity of output (in 000s) produced by he firm. The market price faced by the firm is $44 Use this information to answer the questions (a. through f.) below. a. In the box bel a firm's marginal cost (MC). b. What is the firm's profit-maximizing quantity Profit- maximizing Quantity: C. What is the firm's profit? Profit: d. Suppose technological improvement in production leads to a decrease in cost of $1.50 per unit of output. d1. What is the firm's profit-maximizing quantity? NOTE: Carry Profit- maximizing Quantity: d2. What is the firm's profit? Profit: e. Consider the firm's decision to temporarily shut down. e1. At what level of output (i.e. quantity) would the firm shut down? NOTE: Use the inal total cost function Shut-down Quantity: e2. At what price would the firm shut down? Shut-down Price: Consider the firm's decision to possibly exit (or leave) the industry. f1. At what level of output (i.e. quantity) would the firm consider leaving the industry? NOTE: Use the minal total cost function Exit Quantity 12. What would be the price at that level of output? NOTE: This is is otherwise known as the long-run equilibrium price in the market. Exit Price