Price Use the graph to answer the free-response question. Show any calculations and be sure to label your response. $10 $8 $6 $4 10 14 15 18 22 Quantity MC ATC AVC Assume that the firm above operates in a perfectly competitive market. a. At which of the labeled price points above would a profit-maximizing firm shut down production in the short run and leave the market in the long run? b. Assume the market is in short-run equilibrium and this firm is earning normal profits. What must be the market price? c. If the market price in the short run is $6, what will this firm's total revenue be? d. Explain how the short-run price from part (c) could move to the long-run equilibrium price level. e. If the government instituted a lump-sum tax, which of the curves above would move, if any?

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