Problem 6.3. rIhe table below shows marginal and average mtal cosis for a baker}r selling cupcakes in a competitive market. Market price is $3.00 per cupcake. '5 (b) What are total costs when output is 4? I$ lWhenoutputis 6? (c) If the rm increases output from 2 to 3, how much extra revenue is earned? (d) How many dozen does the rm produce when market price is $3.00? I Whatare rm protsat thatprice? _ (e) How many dozens does the rm produce if the market price falls to $2? What are rm profits at that price? $ I (f) How low can cupcake prices fall before the firm ' - even and must exit the market? (a) What is the marginal cost of the 5th unit? $ |$_| O l 2 3 4 5 6 7 Cupcakes (g) Illustratethe breakeven price on the yaxis of the graph