3. Suppose a ABC Corp is a perfectly competitive firm that makes baseballs gloves. The price of a glove is $35. The total cost of making baseballs is given by TC = 20 + 5Q + 5Q2 a) Briefly explain why P = MR for this firm. b) Briefly explain why the firm must set MR = MC (MC increasing) to maximize profit or minimize losses c) To maximize profits, this firm should produce baseballs, and the firm will earn in profits. d) This firm will earn a producer surplus equal to