Use the diagram below to answer the following questions. Price and cost $40.50 36.00 30.00 22.00...

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Use the diagram below to answer the following questions. Price and cost $40.50 36.00 30.00 22.00 20.00 0 MC 130 180 240 ATC AVC MR Quantity (a) How can you determine that this figure represents a graph of a perfectly competitive firm? Be specific: indicate which curve gives you this information and how you are using this information to arrive at your conclusion. (1 mark) (b) Identify the profit-maximising output and price. Explain all steps. (1 mark) (c) What is the profit or loss at the profit-maximising level of output? (show your workings) (2 marks) (d) Is this industry in the short run or long-run equilibrium? If it is not in the long-run equilibrium, what will need to happen in this industry to achieve the long-run equilibrium? (2 marks) Use the diagram below to answer the following questions. Price and cost $40.50 36.00 30.00 22.00 20.00 0 MC 130 180 240 ATC AVC MR Quantity (a) How can you determine that this figure represents a graph of a perfectly competitive firm? Be specific: indicate which curve gives you this information and how you are using this information to arrive at your conclusion. (1 mark) (b) Identify the profit-maximising output and price. Explain all steps. (1 mark) (c) What is the profit or loss at the profit-maximising level of output? (show your workings) (2 marks) (d) Is this industry in the short run or long-run equilibrium? If it is not in the long-run equilibrium, what will need to happen in this industry to achieve the long-run equilibrium? (2 marks)