Question: Question 3 [6 points] Assume the following graph below is for a purely competitive producer. 160 140 120 Price ($/unit) 10 80 ATC 60 40

Question 3 [6 points] Assume the following graph below is for a purely competitive producer. 160 140 120 Price ($/unit) 10 80 ATC 60 40 20 AVC MC 5 6 9 10 Quantity (units/day) Note: Round your answers to the nearest whole number. a) At a given price of $65, this firm will maximize profits by producing and selling how many units? Quantity = 0 unit(s)/day b) What is the quantity of output associated with zero economic profit? Quantity = 0 unit(s)/dayc) At what price will the short-run shutdown point occur at? Price = $0 d) Above what price will the firm be making (economic) profits? Price = $0 e) At a given price of $10, how many units will this firm produce? Quantity = 0 unit(s)/day f) Between what two prices will the firm be incurring losses, but will still produce since these losses are less than the losses (i.e., fixed costs) associated with the shutdown price? 50

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