1. A firm producing children's bikes has the following short run cost structure. Cost data is in $'s. Use the data below to answer the following: Q IC AVC ATC MC 0 250 280 300 310 320 D O J O UI A W N K 340 370 410 460 520 10 590 a) The MC = at Q = 4 and the MC = at Q = 5. Did the MC increase or decrease? Explain why. b) The AVC has increased/decreased as Q increased from 1 to 2 units. As a result we can conclude that the corresponding MC must be higher or lower than AVC. Briefly explain. c) From the costs in the table above, it can be deduced that production at this firm is subject to diminishing returns. Answer true or false and briefly explain. d) The minimum AVC is called the shutdown price of the firm. State true or false and briefly explain