Problem I A firm is choosing its level of output, x. Its total revenue are px, where p > 0 is the price of output. Its total costs are xe, where o > 0. 1. What must be true about o for the firm's profit maximization problem to have a unique solution? Interpret this condition economically. 2. Find the firms optimal output level, x, as a function of p and or. 3. What are the effects of a marginal increase in p on the firm's optimal levels of x