need solution:

For all questions written explanation is required which shows your understanding of the topic. Any copied/plagiarized text will not be accepted. The marks for each question are in brackets [..] 1. A firm makes brooms and then sells them door-to-door. Here is a relationship between the number of workers and the firm's output in a given day. Assume that capital is fixed: [20] Workers Output Marginal Total Total Total Cost Average Marginal Product Fixed Cost Variable Total Cost Cost Cost 0 0 1 20 2 70 3 110 140 5 160 6 170 7 175 (a) Fill in the column for marginal product (Clearly show how you calculated each entry). What pattern to do see and how would you explain it. (b) A worker costs Rs.200 a day, and the firm has fixed cost of Rs.300. Use this information to fill in the column for fixed-, variable-, total- ,average total cost of production and marginal cost. (Clearly show how you calculated each column). (c) Compare the column of marginal product and the column of marginal cost. Explain the relationship. (d) Compare the column of average total cost and the column of marginal cost. Explain the relationship. 2. Explain the scenarios in which perfectly competitive firm will operate in the short- run and scenarios in which perfectly competitive firm will shut-down in the short- run. [Draw diagrams to represent the different scenarios] [10] 3. Why do you think Pakistan Railways is a classic example of a natural monopoly? Explain why Pfizer covid19 vaccine is considered a monopoly? [10] 4. Fully explain how a monopolistically competitive firm makes its pricing and output decision. If a monopolistically competitive firm is making profits in the short run, are these profits sustainable in the long run? Fully explain what happens as the firm moves to the long-run. [Draw a diagram to illustrate the situation of the firm in the short-run and then in the long run]. [10]