Kelson Electronics, a manufacturer of DVRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q a. What does this function imply about the effect of the law of diminishing returns on Kelson's short-run cost function? (4) b. Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. (3) c. Assume Kelson operates as a price taker. What is this firm's profit- maximizing level of output if the market price is $175? (4) d. What is the structure of the market, in which Kelson Electronics is operating? Explain. (3) e. What are total revenues if firm is producing at profit-maximizing level? (3) f. If the total cost function is TC = 150Q + 0.0025(3, what is the cost of producing profit maximizing level of output. (3) g. If the market price decreased to $160, what will be firm optimum quantity with this new price? Will the firm still be making economic profits? (6)