Answer
a) Please see the first screenshot.
b) The firm's loss is 100 dollars.
c) The firm's loss is still 100 dollars.
Work Step by Step
a) The first screenshot shows the average fixed costs, the average variable costs, the average total costs, and the marginal costs for each level of production.
b) This is not a wise decision. (Please see the second screenshot, with the revenue and profit columns.) At an output of 0 units, the firm has a loss of 100 dollars. However, at output of 3 units--as well as at 4 units--the firm has a loss of 40 dollars (less than the firm's loss at 0 units).
c) This is still not the best decision. The marginal costs of the second and third units are less than the price, so the firm could lose less money by producing more units.
