Question 2 James started a kiosk business in 2021 whose main product was milk. Suppose James started the business from his own premises from which his rental earning was AUD 3,000 per month. The table below represents James' April 2021 business summary: Item Cost 1 Milk truck AUD 40,000 Milk stainless cans AUD 20,000 Milk cooler AUD 10,000 2 litre milk packs (Number of packs bought depend on demand. Assume this is AUD the average expenditure per month) 40,000 Milk production per day 500 litres Note: Assume 56,000 litres are produced per month. Also assume all the milk produced is bought Use the table to answer the questions below. a. Calculate James's fixed cost and average fixed cost. ANSWER a): b. Calculate James's variable cost and avarege variable cost. ANSWER b): c. Assume James sells milk at AUD 2 per litre. Calculate John's accounting profit and economic profit for the month of January. ANSWER c):Question 3 The Australian airline industry is largely dominated by Qantas, Virgin Blue and Jetstar with a market share of about 90%. Answer the questions below. a) What is the market structure in which Qantas, Virgin Blue and Jetstar operate in Australia? Explain your answer using the market structure characteristics for the 3 firms (Qantas, Virgin Blue and Jetstar). ANSWER a): b) Use a figure to explain what you understand by the term "Kinked demand curve" for Qantas, Virgin Blue and Jetstar market structure. ANSWER b)