MC ATC Price, Cost 20 10 D 0 2 3 4 5 6 7 8 9 10 MR Quantity The graph shows the curves for one of many profit-maximizing firms operating in the short-run in an industry in which there are no barriers to entry. Each firm sells a similar but not identical product. 1. Calculate the total revenue of producing 4 units. 2. For quantities between 3 to 4 units, is the demand curve elastic, inelastic, or unit elastic? Explain. 3. Assume the firm is currently charging a price of $70. In order to maximize profit, should the firm increase, decrease, or keep its price the same? Explain. 4. At a quantity of 6 units, does this firm have increasing marginal returns or diminishing marginal returns? Explain. 5. Identify the firm's allocationy efficient quantity and explain how you determined it