3. Consider the firm whose cost and demand curves are shown to the right. If this firm produces the profit maximizing level of output it will:

1. produce 50 units and charge a price of 1.
2. produce 40 units and charge a price of 4.
3. produce 20 units and charge a price of 10.
4. produce 20 units and charge a price of 6.
5. produce 20 units and charge a price of 3.

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