Question: The following figure illustrates a perfectly competitive firm's long run cost curves.

a. If the market price is $70, how many units of output will the firm produce?

b. If the market price is $70, what is the firm's economic profit/loss?

c. To reach the long-run competitive equilibrium from the $70 market price, will the number of firms in the industry increase or decrease? Why?

d. At the long-run competitive equilibrium, what will be the market price?

e. At the long-run competitive equilibrium, how many units of output will the firm produce?

f. At the long-run competitive equilibrium, what is the firm's economic profit/loss?