II. Suppose the graph below shows the cost curves for a hypothetical firm that produces widgets . The vertical axis measures the price and the cost , in dollars , of a widget and the horizontal axis measures the quantity of widgets produced per day . 1. What is the average total cost of 20 P, C ($) widgets ? 200- 2. At what level of output is ATC 180- minimized 160 a.) At this level of output , what is the 140- CATCH average total cost of a widget ? 120- AVC 100 3. Suppose that widgets sell in a perfectly market at a price of $90 80 competitive each 60 - 40 a.) Draw the firm's demand curve 20 b.) Draw the firm's marginal revenue curve 2 4 6 8 10 12 14 16 18 20 22 Q/t c.) How many widgets would this firm want to produce and sell in order to maximize its profits or minimize its losses , and why? d.) If the firm produces and sells the quantity given in part c, how much profit (or loss ) will it make ? Show your work . e.) Draw and label a rectangle on the graph that represents the firm's profit or loss . f.) How many widgets would the firm want to produce and sell if it wanted to minimize its average loss ? 4. At what price would this firm break even ? 5. Will this firm continue to operate in the short run ? Explain