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a. Define fixed cost. Provide a few examples of a firm's fixed costs. (8pts) b. A competitive firm's bookkeeper, upon reviewing the firm's books, finds that the firm spent twice as much on its plant, a fixed cost, as the firm's manager had previously thought. Should the manager change the output level because of this new information? How does this new information affect the profit? (12pts)A firm faces the following average revenue [inverse demand) curve: P = 120 0.020 where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by: C = 600 + 20,000 Assume that the firm maximizes prots. a. 1What is the level of production, price, and total profit per week? [Hint Marginal Revenue curve has the same equation as the demand curve, only twice the slope of the demand curve] b. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and prot? a. Define a price ceiling and a price floor. [8pts] b. Using a demand-supply framework, show the impact of a binding price ceiling on the market equilibrium. Your answer should include a neatly labeled graph and your explanation should be written in the following steps: Step 1: Show the initial unregulated or free market equilibrium. Step 2: Show how the equilibrium changes with the price ceiling. Step 3: Describe the welfare effect [that is effect of the ceiling on consumer and producer surplus and net economic welfare]. [12pts)