1. Answer the questions below using the cost curves for the price-taking rm shown in the following graph: SMC 60 50 42.50 .p O (p \\I 0) 0 Price and cost (dollars) 20 17.50 10 0 1,000 2,000 3,000 4,000 Quantity Now suppose price falls to $20. 6. Draw the new marginal revenue curve. The manager should now produce units to maximize profit. At this output level, average total cost is 35 average fixed cost is $ and average variable cost is $ . f Total revenue is now $ and total cost is $ . The rm makes a loss of $ g. Total variable cost is $ , leaving $ to apply to xed cost. .3\" If price falls below $ , the rm will produce zero output. Explain why