3. The following graph depicts the costs of a price-taking firm (perfect competition). MC MC, ATC, AVC ATC AVC 20 18 15 200 a. Suppose the price of the product is $18 and the firm produces 200 units. What are the firm's profits? Explair *s) b. Suppose the firm produces 250 units instead of the 200 units given in part 'a' (the price is still $18). What would happer +n its profits relative to part 'a'? Explain how you arrived at your answer (s,

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