1. Consider a monopolistically competitive firm. The following table presents the cost and revenue data for the firm: Costs Revenues TC MC Q P 0 50 1 45 TR MR 25 1 27 2 30 2 40 3 34 3 35 4 39 4 30 5 45 5 25 6 20 7 15 8 10 52 7 60 8. 69 (a) What is the firm's profit-maximizing output? (b) When maximizing profit, what price does the firm charge? (c) (d) If the government required the firm to produce at the efficient scale of output, how many units of output would the firm sell? what is the maximum profit the firm could earn? (Hint: The efficient scale of output is one that corresponds to the lowest ATC (Average Total Cost). To answer this question, you need to calculate ATC for all levels of output) (e) Suppose the government required the firm to produce at the efficient scale of output. Who would At the profit-maximizing quantity, what is the firm's total profit? | Scapter bhecalase of this oiry bey the fim and consumers? Explain. [Hint: To check the welfare of the firm, compare the profit levels in 1 (c) and 1 (d). To check the welfare of consumers, compare the prices charged to them in 1(b) and in 1 (d)]