I am having trouble intrepreting graphs, and need some help practicing. Please provide a detailed step by step discussion to these questions.
Question #4. Consider the Figure below that represents a perfectly competitive firm.
See document for graphs and answer the following questions.
a. What is the profit maximizing level of output?
b. What is the Average Cost per Unit for producing the output identified in a?
c. What is the firm's profit or loss?
d. Is the firm operating in the long run or in the Short run? How do you know?
Aspects related to a perfectly competitive firm are depicted.