Q1. Market Structures: Chapter 7 Perfect Competition (7 marks) Refer to solved problem 7.1 in this chapter for understanding the calculations Assume that Angela sells hot dogs in a perfectly competitive hot dog market. Her output per day and costs are outlined in the following Table-1. Table 1 Output $ Total $ ATC $ AVC Marginal Marginal per day cost (TC) cost Revenue (MC) $ (MR) S 0 $1.00 2.50 2 3.50 3 4.20 4 4.50 5 5.20 6 6.80 7 8.70 8 10.70 9 13.00 (a) Complete Table-1 columns for Average Total Cost (ATC), Average Variable Cost (AVC), MC and MR. List and explain the assumptions of perfect competition for hot dog market. (3 marks) (b) If the current equilibrium price in the hot dog market is $1.80, how many hot dogs will Angela produce, what price will she charge and how much profit (or loss) will she make? (1.5 marks) (c) Draw and explain the graph to illustrate your answer. Your graph should be clearly labelled and should include Angela's ATC, AVC, MC and MR demand