3. The gure below shows the total cost and total revenue for a perfectly competitive rm. Cast TE: TR TFC qa quantity Refer to the gure above, a rm would maximise prot where: The horizontal distance between TC and TR is the largest. The quantity of output is larger than total costs. The vertical distance between TC and TR is the largest. The quantity of output is larger than total revenue. 9-9 53'!\" 4. What would the average total cost be if the rm in the gure below is producing the number of outputs that will maximize its prot? MC Price and cost per unit Quantity a. 25. b. 20. 1. A good with a horizontal demand curve has PED equals: Price D Quantity 0. b . co 1 d. Between 0 and 1. 2. Refer to the figure below, if the price of handbags is $75 Price Handbags 190 E75 E60 E45 E30 0 200 400 600 800 1000 Quantity a. there would be a surplus of 800 units. b. there would be a surplus of 400 units. c. there would be a shortage of 800 units. d. there would be a shortage of 400 units