Question

Number 6 . Can you explain the reasoning behind please

6. A perfectly competitive firm produces where p MC-ATC. -M尺 a. Its marginal revenue is always equal to the market price. b. Its marginal cost is always equal to the market price. c. Its marginal revenue is always equal to the average total cost. d. All of the above are correct. 7. The fol llowing graphs show the market for a good traded in a perfectly competitive market, and the cost curves of a representative firm in that market. Assume that the minimum of ATC is also the minimum of LRAC. (4 points) Entire Market Single Representative Firm 25 r 25 T S1 MC 20 t S2 20 ATC 15isF S3 AVC 200 250 300 350 400 450 10 15 20 25 30 35 40 45 50 Quantity (Number of Units) Quantity (Number of Units) a. In the short run, loss from operating is higher than the fixed costs if market price is less than b. The long run equilibrium price in this industry is (describe its shape Tho lone run market supply curve in this industry is