Question: Use the graph to answer the free - response question. Show any calculations and be sure to label your response. A market graph shows quantity

Use the graph to answer the free-response question. Show any calculations and be sure to label your response.
A market graph shows quantity on the horizontal axis and price in dollars on the vertical axis. A curve labeled MC swoops downward then upward to the right. A u shaped curve labeled ATC intersects MC at 18 units, 8 dollars. Another u shaped curve labeled AVC is below ATC. AVC intersects MC at 14 units, 4 dollars. Additional points on the MC line are identified 10 units, 2 dollars; 15 units, 6 dollars; 22 units, 10 dollars.
Assume that the firm above operates in a perfectly competitive market.
Which labeled price(s) could be the market price if this firm is earning positive economic profits?
Explain how the short-run price(s) from part (a) could get to the long-run equilibrium price level.
At which labeled price(s) from the graph would the firm operate in the short run but leave the market in the long run?
If the short-run market price is $8, what will this firm's total revenue be?
If the government instituted a per-unit tax, which curve(s) above would move?

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