Please answer both A and B. I’m okay with short answers. A. Why can’t an individual firm raise its price by reducing out

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Please answer both A and B. I’m okaywith short answers.
A. Why can’t an individual firm raiseits price by reducing output or lower its price to increase salesvolume in a purely competitive market?
B. Jane quit her job at IBM where sheearned $50,000 a year. She cashed in $50,000 in corporatebonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter servicebetween Lincoln and Omaha. There are 1000 people who will pay$400 a year each for the commuter service; $280 from each persongoes for gas, maintenance, insurance, and depreciation. Sheestimates that her entrepreneurial skills would have typicallyyielded a normal profit of $5,000 in another business.
Complete the following questions: (1)What are Jane’s total revenues? (2) What are Jane’s explicitcosts? (3) What is her accounting profit? (4) What is Jane’spure economic profit (loss)?