Question #2 l? Marks) Per Unit Costs Cost per Unit {$1 Output Quantity A} What is the protmaximizing price and level of output for the monopolist? (2 marks) B] What area in the figure shows the level of profits for the monopolist? Are profits positive or negative? [2 marks) C] What area shows the deadweight loss to society resulting from the monopolist's output decision? [1 mark) D} Now suppose that the industry is made up of many small, price-taking firms [with the same technology}. What are the equilibrium price and level of output in this caSe? [2 marks) Question #3 (6 Marks) Use the diagrams below to answer the following questions {assume scale is same on all graphs) Firm 3 FIrIT d ATC AVE A) Which ofthe firms above would continue to operate? (1 mark) and which would shut down? (1 mark) 3) Which firm is operating at their "shut-down price\"?(1 mark) C) Which firm is incurring the most profits? (1 mark) D) What feature of a perfectly competitive market creates a zeroprofit long run equilibrium? (1 mark)