b) (4 points) Graph demand, marginal revenue, marginal cost and average total cost (ATC) below. Mark Q*, P*, ATC* (you’ll have to calculate it) and the endpoints to all of the curves.

c) (2 points) Given your answers above, explain which curve(s) will shift in the long run and why.

d) (4 points) Draw the graph that represents this firm in the long-run. Label the profit-maximizing price and quantity as P* and Q*, respectively. No numbers are necessary, but be sure that the curves are drawn so they properly relate to each other.