2 The table below gives cost data for Acme, Inc , a perfectly competitive, profit maximizing widget firm Fill in the blanks and highlight one of the responses in each set of brackets response a response b (15 points) If the market price of a widget is $60 and ACME produces 150 widgets, then Acme is is not maximizing its profits because MR(150) $ $ and Acme's profits are 150 widgets are (150) $ (i e , calculate (150)) If the price of a widget is $60, then Acme's profit maximizing output level, Q1 , is units and its profits at Q1 are (Q1 ) $ (i e , calculate (Q1 )) Suppose that the price decreases to $30 and the firm produces 140 units of output If the firm produces and sells one more widget (141) then its profits will increase decrease by $ If the price decreases to $12, then Acme's profit maximizing (or loss minimizing) output level, Q2 , is units and its profits at Q2 are (Q2 ) $ (i e , calculate (Q2 ))

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Question: 2. The table below gives cost data for Acme, Inc., a perfectly competitive, profit-maximizing widget firm. Fill in the blanks and highlight one of the

2. The table below gives cost data for Acme, Inc., a perfectly competitive, profit-maximizing widget firm. Fill in the blanks and highlight one of the responses in each set of brackets [ response a | response b ]. (15 points)

If the market price of a widget is $60 and ACME produces 150 widgets, then Acme [ is | is not ] maximizing its profits because MR(150) = $___________ [ < | = | > ] $__________ and Acme's profits are 150 widgets are (150) = $__________________ (i.e., calculate (150)).
If the price of a widget is $60, then Acme's profit maximizing output level, Q1*, is ____________ units and its profits at Q1* are (Q1*) = $__________________ (i.e., calculate (Q1*)).
Suppose that the price decreases to $30 and the firm produces 140 units of output. If the firm produces and sells one more widget (141) then its profits will [ increase | decrease ] by $__________.

If the price decreases to $12, then Acme's profit maximizing (or loss minimizing) output level, Q2*, is ____________ units and its profits at Q2* are (Q2*) = $__________________ (i.e., calculate (Q2*)).

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