The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair.

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive rm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Cost: Quantity MG ATC of Ear Buds (S) {3) 20 1 .25 25 2.00 1 .40 30 2.43 1 .53 35 3.54 1 .86 40 4.02 2.13 45 5.46 2.50 50 6.00 2.85 55 8.46 3.36 Instructions: In part a, enter your answer as the closest given whole number. In parts bd, round your answers to two decimal places. a. l' Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the protmaximizing quantity, what is the total cost of producing ear buds? $ c. lft'le market price for ear buds is $6 per pair, and Buddies produces the protrmaximizing quantity of ear buds, what will Buddies pro or loss be per week? $ (1. Now assume the market price is $5.50 per pair, and Buddies produces the protmaximizing quantity of ear buds. What will Budcies profit or loss be per week? $ e. Buddies earns a normal profit when 0 average cost equals average revenue at the minimum of average cost. 0 marginal cost equals average cost at the minimum of average cost. 0 marginal cost equals marginal revenue at the minimum of marginal cost. 0 marginal cost equals average cost