Question 3 The following is cost structure for company X (Table 2) Quantity Total cost Marginal cost Average total Average Average fixed cost variable cost cost 2000 2800 3200 1600 1300 1500 6000 1500 1000 1200 400 11000 1500 A. Fill in the blanks in the table 2, above (6 marks) B. Why does the marginal cost of each unit initially fall, then increase as more units are produced? (2 marks) C. Explain the production optimization point of the firm. (2 marks) Question 4 Company X operates under a perfect competitive market structure. Assume Qd=3000-2p, Q3=-3000+2p. Associated costs are presented in table 2. A. Graph the firm's cost and revenue curve. On the graph, identify price. production quantity and profit/ loss position (5 marks) B. Explain the reaction/s of the company in the short run, given the fin's profit loss position identified in A (2 marks) C. Company X wants to increase its price to $2000, explain the possible outcome for the company and state the basic assumptions leading to the outcome