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3. Bob produces flower pots for sale, which he designs and manufactures using 3-D printing technology. Bob rents a building for $30,000 per month and rents machinery for $20,000 a month. Those are his fixed costs. His variable cost per month is given in the accompanying table. Quantity of flower pots VC 0 SO 1,000 5,000 2,000 8,000 3,000 9,000 4,000 14,000 5,000 20,000 6,000 33,000 7,000 49,000 8,000 72,000 9,000 99,000 10,000 150,000 a. Calculate Bob's average variable cost, average total cost, and marginal cost for each quantity of output. b. There is free entry into the industry, and anyone who enters will face the same costs as Bob. Suppose that currently the price of a flower pot is $25. What will Bob's profit be? Is this a long-run equilibrium? If not, what will the price of a flower pot be in the long run? 4. Consider Bob's company described in Problem 3. Assume that flower pot production is a perfectly competitive industry. For each of the following questions, explain your answers. a. What is Bob's break-even price? What is his shut-down price? b. Suppose the price of a flower pot is $2. What should Bob do in the short run? c. Suppose the price of a flower pot is $7. What is the profit-maximizing quantity of flower pots that Bob should produce? What will his total profit be? Will he produce or shut down in the short run? Will he stay in the industry or exit in the long run? d. Suppose instead that the price of a flower pot is $20. Now what is the profit-maximizing quantity of flower pots that Bob should produce? What will his total profit be now? Will he produce or shut down in the short run? Will he stay in the industry or exit in the long run? 5. Consider again Bob's company described in Problem 3. a. Draw Bob's marginal cost curve. b. Over what range of prices will Bob produce no flower pots in the short run? c. Draw Bob's individual supply curve. In your graph, plot the price range from $0 to $60 in increments of $10