Answer the following questions based on the accompanying graph. 
a. What is the profit-maximizing price and quantity for this firm?
b. What is the price and quantity combination that creates the greatest economic welfare for society? At this price and quantity, is the firm making a profit or a loss?
c. What will the firm do if it is incurring a loss? What is the lowest price the government could force the firm to charge?
Definitions:
Correlation Coefficient
A mathematical metric that evaluates the intensity of the correlation between the movements of two related variables.
Line of Best Fit
A straight line drawn through the center of a group of data points on a scatter plot, showing the direction of a relationship.
Excess Return
The return on an investment over the risk-free rate, indicating the extra amount earned for taking on risk.
Risk-Free Rate
The theoretical return on an investment with zero risk, typically considered as the return on government bonds.
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