Question: Question 3 (Essay Worth 5 points) (03.01-03.07 MC) Use the graph to answer the free-response question. Show any calculations and be sure to label your

Question 3 (Essay Worth 5 points) (03.01-03.07 MC) Use the graph to answer the free-response question. Show any calculations and be sure to label your response. MC ATC AVC Price 2 14 15 18 Quantity Assume that the firm above operates in a perfectly competitive market. a. If the short-run market price is $2, how many units will the profit-maximizing firm above produce? b. Assume the market is in short-run equilibrium and this firm is earning normal profits. What must be the market price? c. If the market price in the short run is $6, what will this firm's total revenue be? d. Explain how the short-run price from part (c) could move to the long-run equilibrium price level. e. If the government instituted a lump-sum tax, which of the curves above would move, if any

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