I. Suppose the graph below shows the cost curves for a hypothetical firm that produces widgets. The vertical axis measures the cost, in dollars, of a widget and the horizontal axis measures the quantity of widgets produced per day. MC is marginal cost, ATC is average total cost, and AVC is average variable cost. Cost ($) 200 | 180- 160- 140 120- ATC 100- 80- AVC 60- 40- 20 6 8 10 12 14 16 18 20 22 Q/t A. At what level of output does this firm begin to experience diminishing returns? How do you know? B. Estimate the following for this firm: 1. the additional cost of the 8th widget 2. the average total cost of 8 widgets 3. the average variable cost of 8 widgets 4. the average fixed cost of 8 widgets 5. the total cost of 8 widgets 6. the total variable cost of 8 widgets 7. the total fixed cost of 8 widgets