Suppose that a perfectly competitive firms’ Total Cost function is given by: SRTC(q) = 50 + 80q –10q2 + .6q3 a. What is fixed cost equal to? What is Variable Cost equal to? b. What is Marginal Cost equal to? What is Average Variable Cost equal to? c. Find an equation for the inverse supply curve of the firm. Hint: the supply curve presumes profit maximizing outputs at any market price. d. Below which market price (a number) will this firm choose to produce 0 output? e. Choose a market price that is between Average Cost and Average Variable Cost. Will the firm choose to produce a positive output level? Depict this output level in a graph that includes all the appropriate curves. Explain verbally (and with numbers) why this firm would choose to produce the output you chose. f. What does it mean by a firm to be a price taker? What is the implication of this for the individual firms’ demand curve? You must also mention in your answer the term elasticity (correctly of course). g. If the firm’s cost curve shifted down, what would this do to the firm’s supply curve? Justify your answer with an example using the short run total cost curve above.