7. (The Short-Run Firm Supply Curve) Use the following data to answer the questions

below: See the textbook for the data...

Q VC MC AVC

1 $10

2 $16

3 $20

4 $25

5 $31

6 $38

7 $46

8 $55

9 $65

a. Calculate the marginal cost and average variable cost for each level of production.

b. How much would the firm produce if it could sell its product for $5? For $7? For $10?

c. Explain your answers.

d. Assuming that its fixed cost is $3, calculate the firm's profit at each of the production

levels determined in part (b).