Table 1 shows the total cost schedule for a competitive firm. Price per unit of output is 7.

Quantity	Total Cost
0	15
1	25
2	30
3	34
4	38
5	45
6	55
7	70
8	100

Table 1

A)Calculate average total cost (ATC=TC/Q), marginal cost (MC=TC/Q) and marginal revenue (MR=TR/Q) for each level of output.

B)Plot ATC, MC and MR on a graph and mark the profit-maximising (loss minimising) output. At what output level is profit maximised (loss minimised)?

C)How much profit/loss is made at the optimum level of output?

D)Assume that the firm's minimum average variable cost is 6.5. Should the firm continue operating in the market in the short run? In the long run? Explain.

E)If the firm is typical of other firms in the market, what price will it charge in the long run? Explain.