Homework Set 3 O 3) Suppose you are given the following information: 1) Suppose you are given the following information about a firm? Quantity Price Total Revenue Marginal Revenue Output Total Cost Variable Cost |Marginal Cost $56 $20 $13 2 $50 $25 3 $44 3 $33 $38 $45 $32 $60 $26 6 $80 $20 $103 You are running the widget business for the town of Smallsville:.. You look at your How many units would this firm produce at a price of $10 in the short-run AND demand and have to decide what price to charge. Since you are the only widgetmaker, WHY? Long-run?. How many units would this firm produce at a price of $13, short- you are free to act as you wish.. Suppose that the cost of producing each widget was $17, run? ... How many units would the firm produce at a price of $8, short-run, long- how much would you charge? Why?. Suppose that the cost of producing each widget was run? $12, how much would you charge? Why?.. What is your producer surplus? 2) Answer the following question based on the chart below: Total Fixed Total Variable AVC Marginal Cost Cost Cost Cost 0 $12 1 $17 $23 $29 DAWN $37 $47 If the good is selling for $8, the optimal amount for this firm to produce in the short run is?..When would the firm shut-down in the short-run (ie. at what price)? What if the price of the good was $52._What would the firm do if the price fell to $2? What about in the long-run