Question $1$

The figure above shows the costs for a firm that operates in a perfectly competitive market and faces the market price $p^{**}=$$$28.$ Use this figure to answer the following questions:

A$.$ What level of output should this firm produce in the short$-$run and why?

B$.$ Use the level of output you found above in part $($B$)$ to answer the following questions:

i$.$ What is the firm's Total Cost? Fixed cost? Profit?

ii$.$ In the short$-$run, should this firm operate or shutdown $($produce zero$)?$ Why?

iii. If the current market price remains where it is$,$ should the firm remain in the market or exit in the long$-$run? Why?

iv$.$ If this firm represents a typical firm in this market, what should happen to supply and demand for this product in the long$-$run? What will the long$-$run equilibrium price be$?$