EXERCISE B: Answer ANY 5 (40 points- 8 points each) 1. Below is a cost and revenue table for a perfectly competitive firm producing purple- spotted people eaters. Fill in the missing information assuming that market price is $24. Q FC TC MC ATC MR TR Profit 0 105 105 N/A N/A 105 135 30 135 2 105 160 25 80 3 105 180 20 60 4 105 195 15 48.75 5 105 215 20 43 6 105 250 35 41.67 7 105 295 45 42.14 8 105 355 60 44.375 2. What is the profit maximizing (or loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two people eaters or three people eaters, but not 2.5 or 3.75 people-eaters.) 3. We usually say that the competitive firm maximizes profits by choosing the output level that makes MC=MR - but that isn't exactly true here at the optimal level of people-eater output. Why not? 4. What is the break-even price for this firm