Question 2: (6 points out of 30) Case 1 Price/Unit: $400 Fixed Cost: $180 $500 $450 Q MC TVC FC TC AVC AFC ATC MR TR Profit $400 $308 $308 $180 $488 $308 $180 $488 $400 $400 -$88 $350 $242 $5 50 $180 $730 $275 $90 $365 $400 $800 $70 $180 $950 $257 $400 $1,200 $250 $300 $220 $770 $60 $317 $226 $996 $180 $1,176 $249 $45 $294 $400 $1,600 $ 425 $250 $248 $1,243 $180 $1,423 $249 $36 $285 $400 $2,000 $577 $200 $281 $1,524 $180 $1,704 $254 $30 $284 $400 $2,400 $697 $329 $1,852 $26 $290 $400 $2,800 $768 $150 $180 $2,032 $265 $395 $2,247 $180 $2,427 $281 $23 $303 $400 $3,200 $773 Max $100 $468 $2,715 $180 $2,895 $302 $20 $322 $400 $3,600 $705 1 ... MC ATE _ _ 8 9 1 10 $550 $3,265 $180 $3,445 $326 $18 $344 $400 $4,000 $555 Case 2 Price/Unit: $330 Fixed Cost: $180 $500 $450 Q MC TVC FC TC AVC AFC ATC MR TR Profit $400 $308 $308 $180 $488 $308 $180 $488 $330 $330 -$158 $350 $242 $550 $180 $730 $275 $90 $365 $3 30 $660 -$70 $300 $220 $770 $180 $950 $257 $60 $317 $330 $990 $40 $250 $226 $996 $180 $1,176 $249 $45 $294 $330 $1,320 $145 $248 $1,243 $180 $1,423 $249 $36 $285 $330 $1,650 $227 $200 $281 $1,524 $180 $1,704 $254 $30 $284 $330 $1,980 $277 $150 $329 $1,852 $180 $2,032 $265 $26 $290 $330 $2,310 $278 Max $23 $303 $330 $2,640 $213 $100 $395 $2,247 $180 $2,427 $281 1 2 3 4 5 6 7 8 9 10 $468 $2,715 $180 $2,895 $302 $20 $322 $330 $2,970 $75 ...... MC -ATC - - - MR $550 $3,265 $180 $3,445 $326 $18 $344 $330 $3,300 -$145 In which Case (1 or 2) is the producer most productive, i.e. operating more efficiently. Please explain your answer with concepts that we have been working with, and use specific numbers in your explanation. Type your answer and explanation here:Question 3: (6 points out of 30) In this segment of the course, we have looked at cases of bookkeeping profit and opportunity cost. a) the bookkeeping profit is greater than the opportunity cost, b) the bookkeeping profit is less than the opportunity cost but more than zero, and c) the bookkeeping profit is equal to the opportunity cost. **"Bookkeeping Profit" is calculated using only Explicit Fixed Costs, and does not include Implicit Fixed Costs. Please answer these questions with full and clear explanations. You may wish to (but don't have to) illustrate your answers with simple numerical examples. This question has 3 parts. Part a. If the Bookkeeping Profit is greater than the Opportunity Cost, what is happening now and what is likely to happen in the future? Type your answer and explanation here: Part b. If the Bookkeeping Profit is less than the Opportunity Cost but more than zero, what is happening now and what is likely to happen in the future? Type your answer and explanation here: Part C. If the Bookkeeping Profit is equal to the Opportunity Cost, what is happening now and what is likely to happen in the future? Type your answer and explanation hereExtra Credit [up to 4 p_ointsl Here is a sample question from an actual Microeconomics textbook {not ours}: If new, more advanced equipment reduces the amount of labor needed to produce an increased level of output, than a} The ATE curve will shill W b] The MIC curve will shilt M c} The AFC curve will shill m d} The MC curve will shift m The authors of the book say that the correct answer is a, since an increase in productivity lowers costs. TrueIr but I think their answer oversimplifies a complex problem and that and another answer is also true. One point for the correct answerr and up to three points for your explanation, which should be thorough and include details or an example. Which other answer is also likely to be correct? Be sure to explain why and to explain what is the economic implication of your answer? Type your answer and explanation here