3. Use the information of Exhibit 2 to answer the following:

(a) How many skilled laborers would SunKissed hire at a monthly wage of $1 200 if it were attempting to maximize profits in its pool installation business?

(b) What would the firm's maximum profit be if its fixed costs were $7000?

(c) Suppose that there was a decline in demand for pools, reducing the market price for installation service to $750. At this demand level, how many employees would SunKissed hire at $ 1 200 per month in the short run? Would SunKissed stay in business at the lower market price? Explain.