The cost data for a firm producing baseball bats appear below. Of the total cost, $25,600 is sunk and fixed at all levels of output. The bats sell for $6.40 each. See screenshot for table distribution of Total Output, and Total Cost.

a) What is the optimal output? (To answer this question, what is the interval that contains the optimal output).

b) What is the level of profit at that output? (Again, a range of values is enough to answer this question correctly).

c) Is the seller a price taker? Explain.

d) If the price were raised to $9.00, what would then be the optimal output level?

e) If the price were lowered because of adverse market conditions to $5.50, would the firm make a loss or a profit?

f) If the firm would make a loss at a price of $5.50, would it continue to produce in the short run?

g) What is the breakeven output when the price is $6.40?

Total Outpu Total Cost Total Output Total Cost 1000 $31,360 9000 $54,400 2000 35,920 10000 58,000 3000 39,520 1 1000 62,560 4000 42,400 12000 68,320 5000 44,800 13000 75,520 6000 46,960 14000 84,400 7000 49, 120 15000 95,200 8000 51,520 16000 108, 160