Ap micro/macro economics
i need some with part (c). i put my solutions to part (a) and (b) for you to work off of. you so much!

assume that the following conditions exist for a perfectly competitive firm:
price = $7.50, current output = 100 units, atc at current output = $9.00, avc at current output = $8.00, total fixed costs =$100 and mc at current output = $8.00.

a. is the firm earning any economic profit currently? how much is its profit or loss?

first, calculate the total cost the firm gets by the equation tc = atc * q = 9 * 100 = $900. then, calculate the total revenue at the current output, p*q = 7.5*100 = $750
therefore the profit at this output level is tr - tc = $750 - $900 = -$150. the firm is incurring a loss of $150.

b. is the firm maximizing its economic profit? what should the firm do to maximize profit or minimize loss?

we can know if a firm is maximizing it's profits if the marginal revenue of selling an additional unit equals the marginal cost of producing that additional unit, which means mr = mc. if mc > mr, the firm is adding more cost than it is revenue, and vise versa if mr > mc.
since this is a perfectly competitive firm, the firm sells every single unit at the same price as mr = p = 7.5. at this taken price the firm can sell as much as it wishes to.
we are given that mc = 8. since mr =/= mc, and rather mr < mc, the firm, with the logic given above, is not maximizing profit. however, they can maximize their profits by decreasing production until mr = p = mc.

c. given your answers in part b, how will the market adjust to reach long-run equilibrium? include appropriate graphs in your explanation.

and this is the part i need with! no graphs necessary, i just need an explanation, and you could tell me a description of the graph i might but again not needed.