To solve this problem, we need to follow a systematic approach to address each part of the

question.

a) Plot the data on the appropriate grids and label the market equilibrium price and quantity for
strawberries and the demand curve for the individual firm.

First, we need to create the graphs based on the given data. The market demand and supply
schedule will allow us to plot the market equilibrium. The individual firm's demand curve can be
represented by the perfect competition firm's marginal revenue curve, which is also its demand
curve.

b) Identify the profit-maximizing quantity (q*) for an individual strawberry farm.

To find the profit-maximizing quantity, we need to look at the point where marginal cost equals
marginal revenue (price). By setting the firm's marginal cost equal to the market price, we can
find the quantity at which the firm maximizes its profit.

c) Calculate the profit or loss for the individual farm at the market equilibrium price and identify it
on the farm's cost curves graph.

To calculate the profit or loss, we can compare total revenue (price times quantity) with total
cost. If total revenue exceeds total cost, the firm is making a profit. If total cost exceeds total
revenue, the firm is experiencing a loss.

Profit or loss = Total Revenue - Total Cost

We can then show this on the firm's cost curves graph to visually represent the situation.

d) In the long run, what is the economic profit of the competitive firm?

In the long run, a perfectly competitive firm will earn zero economic profit. This is because in the
long run, firms can enter or exit the industry as necessary to ensure that all firms earn only a
normal rate of return on their investment. Therefore, the economic profit in the long run is zero.

Profit or loss = 0

e) What will the market equilibrium price and quantity be in the long run?

In the long run, the market equilibrium price and quantity will be determined by the intersection
of the market demand and supply curves, accounting for the zero economic profit condition.
Calculating the long-run equilibrium price and quantity involves analyzing the adjustments made
by firms entering or leaving the industry to ensure that economic profit is zero for all firms.
By systematically addressing each part of the problem and following these steps, we can
effectively solve the given question.