1. Suppose an enterprising NP student rented a tiny space at OurSpace, producing and selling machine sewn, customised leather bags. The short-run sales and costs situation faced by this start-up are given in the table: Price Quantity Total Marginal Total Marginal Average ($1 Demanded Revenue Revenue Cost {3) Cost {$1 Total Cost {$1 {$1 is) D - 60 - clv} 250 250 90 150 430 230 30 115 cli] 210 7'0 ?3.33 840 150 cliv} ?3.?5 110 cliii] 105 80 at\") 17'!) 95 65 180 35 200 270 250 240 230 210 190 170 155 114E]I mm-PhtoMI-IQ (a) List some of the possible xed and variable resources for the production of the customised leather bags. (b) Explain why total cost is not zero even when no leather bags are produced. (c) Calculate the missing figures c(i) to c(v) in the table above. Please state the formulae in your working. (d) What is the prot-maximising level of output? Explain. (e) Calculate the profits earned by the entrepreneur at the profit-maximising level of output. Is this economic or accounting profits? Use the context above to differentiate the two concepts. (f) At which quantity does the entrepreneur encounter diminishing marginal returns? Use the context above to describe the law of diminishing marginal returns. (g) How would the issue in (f) be overcome in the long run