4: Motzi Bread in Baltimore bakes delicious bread. Bread shops are a (perfectly) competitive business in Baltimore. At its current production level, Motzi Bread estimates the following: * Price per loaf of bread: $6 * Average Variable Cost: $4 * Average Total Cost: $7 * Marginal Cost: $5 Based on this information and your knowledge of economics, which of the following should Motzi do? a. Increase Production B. We need more information. C. Decrease production D. Shut down immediately. E. Keep production at the same level. Q5: Giannis's inverse demand curve for smoothies is described by P = 20 - Q. If he purchases 6 smoothies, what is his consumer surplus? 6 18 32 12 24 Q6: To reward loyal customers, a Baltimore wine shop called Angels Eat Lemons uses a declining price schedule. This price schedule has the first bottle of wine cost $50 and every bottle after costs $10. Suppose Roy's demand for bottles of wine at Angels Eat Lemons is described by Q = 10 - 0.2P (and Roy's inverse demand curve is described by P = 50 - 5Q) where P is price and Q is the quantity of wine bottles. How many bottles of wine will Roy purchase? 0 1 5 6 8 9