Rick is a good hearted although crusty character operating the Caf American restaurant/bar on the northern coast of Africa during the second world war. It is his (and other business people's) habit to dump their garbage into the Mediterranean Sea. As time goes by (this is a hint), the war ends, business improves and the amount of garbage going into the sea increases.

You go back in time and say to Rick, "If you don't stop dumping garbage into the sea you're going to regret it - maybe not now, but soon, and for a very long time". Rick is baffled. He serves good food, has a good piano player and a Swedish girlfriend. Rick is a pillar of his community and was even something of a local war hero. Assume Rick is making a small LRE profit and that he has many competitors including "The Blue Parrot".

a) Referring to the file labelled FNLXMSA Graphs, which panel shows Rick's ATC, MC, MR & Demand curves. Tell him which panel and form of organization he is likely facing and why you think so.

X X Panel B Panel A Panel D Panel C Panel F Panel E