Q8 Refer to the diagram given below for answering the questions given below. 5 marks Price 35 mc ATC cost 27 K ($) 24 20 15 AR w 700 800 845 output What is the profit maximizing output, price and ATC? Why? Output = Price = ATC = because How will you describe allocation inefficiency at profit maximizing output? 14 Which area represents the Dead Weight Loss? How will you measure excess capacity in this scenario? How will you describe productive inefficiency at profit maximizing output