3. A price setting firm has at the current output a price of $25, and marginal revenue is $22. A rm is currently producing 10,000 units of output; average total cost is $23, marginal east is $20, and average variable cost is 1120. Is this rm maximizing profit, why or why not? If it is not maximizing profit, what should it do in to increase profits? Do not simply report a rule. Explain why the decision you reconnnend would increase profits. This question can be answered without the use oF graphs, just applying the concepts