Question 10 1 pts Consider the same graph from the previous question. MC, P 1 (S/unit) MC2 MC A 20 P B C D NEW OLD Q (units/ What areas in the graph illustrate the loss in profit to Deliziosa due toNEW OLD Q (units/ What areas in the graph illustrate the loss in profit to Deliziosa due to Covid-19 if the price of pizza remains $20 per unit and Deliziosa continues producing at the old optimal level of output (the one based on MC1) despite the increase in MC? Note that the loss in profit is given by the difference between the new profit and the old profit (this difference is negative). O A + B +C O D only O A + C +D O A only OA +D OA +C O A + B +D O B only O B + D O B + C O C only O A +BQuestion 11 1 pts Consider the same graph from the previous two questions. MC, P (S/unit) MC2 MC A 20 P B C D NEW OLD Q (units/Suppose that, after COVID-19, the U.S. government wants to provide a transfer to producers (the Paycheck Protection Program) that will be forgiven if no worker is fired (employment remains what it was at the old optimal output). By referring to the areas on the graph, what is the minimum transfer of money that will make Deliziosa decide not to fire any worker, despite the increase in costs? For simplicity, assume that the Paycheck Protection Program targets the old optimal output at the new cost. O A + B +D O B + D O B + C O Area C O A +D O A+ B O Area B O B + C +D O A + C OC+D O Area A O A + B + C O Area D O A + B + C+DQuestion 12 1 pts We know that the producer's surplus is different from the firm's profit. Why, then, is the change in producer's surplus equal to the change in profit?Question 13 1 pts Suppose that the change in costs described in questions 7 to 9 suggests Deliziosa to shut down. Why could a moratorium on rent payments maintain Deliziosa in operation even if has no effect on its optimal level of output? Explain without using a graph. Question 6 3 pts [This question continues question 3; you do need to have answered questions 4 and 5 to answer this question] (1 point) If the price of one pizza is $20 and the marginal cost of production is M0 = % , what is the prot-maximizing number of pizzas that should be produced per day by Deliziosa? Show your derivation. (1 point) What is the numerical value of Deliziosa's daily prot at this quantity? Show your derivation. (1 point) How many workers should Deliziosa's hire per day? Show your derivation. Question 7 1 pts [This question builds on the previous questions] Suppose that the production function of Deliziosa changes because of the Covid-19 pandemic to become 1 1 Q = 10K? L3 Assuming that the rental cost of capital and wage do not change, explain in words why this change in production function causes the variable and marginal costs to increase (keep holding K at 1). Question 8 1 pts [This question builds on the previous question] In order to produce a given level of output, Deliziosa now needs a greater number of workers. Then, is Covid-19 good or bad news to workers? Briey explain, using no more than two sentences, by referring to this case only. \f---- NEW OLD Q (units/ What areas in the graph illustrate the loss in profit to Deliziosa due to COVID-19 if the price of pizza remains $20 per unit? Note that the loss in profit is given by the difference between the new profit -at the new level of optimal output - and the old profit -at the old level of optimal output (this difference is negative). OA +D O A +C O B + C O C only O A only O A + B + C O A + B +D O A +B O B + C +D O A + C +D O C + D O B only O B + D