Josie’s Pussycats sells ceramic kittens. The marginal cost of producing a particular kitten depends on how many kittens Josie produces, and is given by the formula MC = 0.8q. Assume that the ceramic kitten industry is perfectly competitive, and Josie can sell as many kittens as she likes at the market price of $16. (a) What is Josie’s marginal revenue from selling another kitten? (b) Determine how many kittens Josie should produce if she wants to maximize profit. How much profit will she make at this output level? Assume fixed costs are zero. (Hint: To find the total cost, take the average of the first and last unit of production, and multiply by the total quantity produced.) (c) Suppose Josie is forced to pay a $100 license to produce her ceramic kittens. What is her value of producer surplus after paying the license?