Afirm in a competitive industry has a total cost function of tc = 0.2 q2 – 5q + 30, whosecorresponding marginal cost curve is mc=0.4q – 5. if the firm faces a price of 6,

a)what quantity should it sell? (10 points)

b)what profit does the firm make at this price? (10 points)

c)should the firm shut down? (10 points)

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u. s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.