Background: Assume that the market for widgets is perfectly competitive. Above is a table that represents the cost structure for one firm, Rangel Inc. Assume that the market price for widgets is currently \$15. Required 1. Complete the table. ( P;MR,TR,TP) 2. Graph the profit maximizing level of production using the MR/MC approach. 3. Then graph (that's a new graph) the MR, P, D, MC, AC and AVC curves to determine if the company is earning an economic proflt, normal profit, or a loss. SHADE the AREA (that's a box) that represents total economic profit or loss. Can you use this one exampie and develop a BROAD RULE that will tell someone, in general, If a company is earning economic (above normal) profit? 4. In the short run, will this company expand? Explain, what about in the long run? Explain Suppose the market price of widgets drops to $4 Repeat 1-2 3. Then graph (that's a new graph) the MR, P, D, MC, AC and AVC curves to determine if the company is earning an economic profit, normal profit or loss. SHADE the AREA (that's a box) that represents total economic profit or loss. 4. Can you use this one example and develop a BROAD RULE that will tell someone if a company is earning economic profit or loss? 5. In the short run, should this company continue to operate or suspend operations (i.e., shut down temporarily)? Why? What's the BROAD RULE that will tell someone if a company should follow one strategy or the other? Suppose the market price of widgets drops to $3 Repeat 1-2 6. Then graph (that's graph \#2) the MR, P, D, MC, AC and AVC curves to determine if the company is earning an economic profit or loss. SHADE the AREA (that's a box) that represents total economic profit or loss. 7. In the long run should this company continue to operate or exit (i.e., shut down temporarily)? 8. Why didn't the Rangel Company just raise prices when her revenues fell