Exam #3 Part B - Illustrate and Explain The table below gives cost data for Acme, Inc., a perfectly competitive, profit-maximizing widget firm. Fill in the blanks and circle or highlight one of the responses in the brackets, "[response a | response b]" If the market price of a widget is $220.00 and Acme produces 350 widgets, then Acme [ is | is not ] maximizing its profits because MR(350) = $ [ ]$_ = MC(350) and Acme's profits at 350 widgets are (350) = $. (i.e., calculate n(350)). b) If the market price of a widget is $182.00, then Acme's profit maximizing output level, Q,*, is units and its profits at Q1* are It(Q1*) = $. (i.e., calculate nt(Q1*)). C) If the market price of a widget is $80.50, then Acme's new profit maximizing output level, Q2*, is units and its profits at Q* are It(Q2*) = $_ (i.e., calculate n(Q2*)). If the market price decreases to $52.00, then Acme's profit maximizing output level, Q3*, is units and its profits at Q3* are It(Q3*) = $. (i.e., calculate n(Q3*)). Q TVC TC MC AFC AVC ATC 200 $17,333 $21,333 $20.00 $20.00 $86.67 $106.67 210 $17,535 $21,535 $20.50 $19.05 $83.50 $102.55 220 $17,747 $21,747 $22.00 $18.18 $80.67 $98.85 230 $17,978 $21,978 $24.50 $17.39 $78.17 $95.56 240 $18,240 $22,240 $28.00 $16.67 $76.00 $92.67 250 $18,542 $22,542 $32.50 $16.00 $74.17 $90.17 260 $18,893 $22,893 $38.00 $15.38 $72.67 $88.05 270 $19,305 $23,305 $44.50 $14.81 $71.50 $86.31 280 $19,787 $23,787 $52.00 $14.29 $70.67 $84.95 290 $20,348 $24,348 $60.50 $13.79 $70.17 $83.96 300 $21,000 $25,000 $70.00 $13.33 $70.00 $83.33 310 $21,752 $25,752 $80.50 $12.90 $70.17 $83.07 320 $22,613 $26,613 $92.00 $12.50 $70.67 $83.17 330 $23,595 $27,595 $104.50 $12.12 $71.50 $83.62 340 $24,707 $28,707 $118.00 $11.76 $72.67 $84.43 350 $25,958 $29,958 $132.50 $11.43 $74.17 $85.60 360 $27,360 $31,360 $148.00 $11.11 $76.00 $87.11 370 $28,922 $32,922 $164.50 $10.81 $78.17 $88.98 380 $30,653 $34,653 $182.00 $10.53 $80.67 $91.19 390 $32,565 $36,565 $200.50 $10.26 $83.50 $93.76 400 $34,667 $38,667 $220.00 $10.00 $86.67 $96.67 410 $36,968 $40,968 $240.50 $9.76 $90.17 $99.92 420 $39,480 $43,480 $262.00 $9.52 $94.00 $103.52 430 $42,212 $46,212 $284.50 $9.30 $98.17 $107.47 440 $45,173 $49,173 $308.00 $9.09 $102.67 $111.76 450 $48,375 $52,376 $332.50 $8.89 $107.50 $116.39 ECON 120 Exam #3 Part B - Page 1 of 1