Consider the following data and information that includes information on a firm's daily marginal cost and marginal revenue. You are not allowed to use a spreadsheet to answer this question.

Q	MR	MC	TR	TC	Profit
0	0	0		100
1	40	10
2	40	5
3	40	10
4	40	20
5	40	35
6	40	45
7	40	65

a. Given this data, how many units of output should a profit-maximizing firm produce?How much profit does it earn at this level of output? Explain how data on marginal revenue (MR) and marginal cost (MC) can be used to identify the level of output that maximizes the firm's profit.

b. What is the effect of dropping the firm's fixed costs from $100 a day to $25 a day on the firm's profit-maximizing level of output? How much profit does the profit-maximizing firm earn in this scenario?