A rm with marginal costs M C (q) = 41 q 2 operates in a perfectly competitive market. It also pays an annual xed costs of 16 which can be recovered if it choose to shut down. (i). Calculate total cost and average variable cost functions (ii). Draw a diagram which shows the rms supply function. Make sure to label everything carefully on your diagram (iii). Suppose the market price is equal to 2:25. Would it be protabe for this rm to stay or would you recommend to exit