Q. 5 Answer the questions below using the cost curves for the price-taking firm shown in the following graph: SMC CO ATC AVC Price and cost (dollars) w N 100 200 300 400 500 600 700 800 900 Output a. If the price is $7 per unit of output, draw the marginal revenue curve. The manager should produce units to maximise profit. b. Because average total cost is $ for this output, total cost is $ c. The firm makes a profit of $ d. At units, average profit is maximized. Why is this output level different from the answer to part "a"? e. Let price fall to $3 and draw the new marginal revenue curve. The manager should now produce units to maximize profit. f. Total revenue is now $ and total cost is $ The firm makes a loss of $ g. Total variable cost is $ leaving $ to apply to fixed cost