Question 4 (4 points) Fixed Costs Total $5,000 Fixed Cost 0 150 200 Quantity of output Refer to the figure above, what happens to the average fixed cost of production when the firm decreases output from 200 to 150? It remains constant. It rises. It could rise or fall depending on what happens to total revenue. It falls.Question 5 (4 points) Price and cost $40.50 36.00 30.00 MR 22.00 20.00 130 180 240 Quantity The figure above shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market. If the market price is $30 and the firm is producing output, what is the amount of the firm's profit or loss? loss of $1,080 profit of $1,440 loss of $2, 520 profit of $1,300Question 6 (4 points) The market for smoothies is perfectly competitive and the market demand schedule is in the first two columns in the below table. Each of the 100 producers of smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What is the market price of a smoothie? Market demand schedule Producers of smoothies Costs Price Quantity Output Marginal cost Average Average total (dollars per demanded (smoothies (dollars per variable cost cost smoothie) (smoothies per hour) additional (dollars per smoothie) per hour) smoothie 1.90 1,000 W 2.50 4.00 7.33 2.00 950 2.20 3.53 6.03 2.20 800 UT 1.90 3.24 .24 2,91 700 6 2.00 3.00 4.67 4.25 550 7 2.91 2.91 4.34 5,25 400 8 4.25 3.00 4.25 5.50 300 8.00 3.33 4.44 $2.20 $5.25 $4.25 $2.91