3) A manufacturer of electronics products has just developed a handheld computer. Following is the cost schedule for producing these computers on a. monthly basis. Also included is a schedule of prices and quantities that the firm believes it will be able to sell (based on previous market research). (p.341, #5) Quantity (thousands) Price Marginal Revenue Average Variable Cost (AVC) Average Total Cost (AC) Marginal Cost (MC) 0 $1,650 1 1,570 $1,570 $1,281 $2,281 $1,281 2 1,490 1,410 1,134 1,634 987 3 1,410 1,250 1,009 1,342.33 759 4 1,330 1,090 906 1,156 597 5 1,250 930 825 1,025 501 6 1,170 770 766 932.67 471 7 1,090 610 729 871.86 507 8 1,010 450 714 839 609 9 930 290 721 832.11 777 10 850 130 750 850 1,011 a) What price should the firm charge if it wants to maximize its profits in the short run? b) What arguments can be made for charging a price higher than this price? (i.e. What reason(s) might a firm have for doing this?) Explain. c) What arguments can be made for charging a price lower than this price? (i.e. What reason(s) might a firm have for doing this?) Explain