7. (5 points) Paul owns a pumpkin picking farm in Pennsylvania. The market is perfectly competitive, with a demand Q 2 2, 000 50F ((2 P 2 40 002(2) and an equilibrium price of $20 per pumpkin. Paul's total cost of production is TC 2 100 + (12 (so his marginal cost is M C 2 2g). He asks his friends for advice on how to maximize his prot: I. John says: You should produce (1 2 10, because that's the quantity such that ATC 2 M C II. George says: You should produce q 2 10, because market demand is unitelastic in equilibrium III. Ringo says: You should produce (1 2 10, because the equilibrium quantity is 1,000 and there are 100 farms in this market IV. Mick says: You should produce q 2 10, because producing more or less would decrease your producer surplus Which argument is correct? A. Ionly E. II only C. III only D. IV only E. I, II, III, and IV F. None