. Use the appropriate formulas to create two new columns (7 and 8) for total profit and profit margin, respectively. What is the maximum profit the El Dorado Star can earn? What is the maximum possible profit margin? Are profit and profit margin maximized at the same point on demand? What is the total fixed cost for the El Dorado Star? Create a new spreadsheet in which total fixed cost increases to $5,000. What price should the manager charge? How many papers should be sold in the short run? What should the owners of the Star do in the long run? 3. Dell Computer Corp., the world's largest personal-computer maker, is keenly aware of everything its rival PC manufacturers decide to do. Explain why Dell usually reacts more quickly and more substantially to pricing, product design, and advertising decisions made by Hewlett- Packard and Gateway than when these same types of decisions are made by Apple Computer. 4. Two firms, Small and Large, compete by price. Each can choose either a low price or a high price. The following payoff table shows the profit (in thousands of dollars) each firm would earn in each of the four possible decision situations: Large Low price High price Low $1,000, $50 Smal price 0 $375, $250 I High $575, - price $550, - $100 $200 Is there a dominant strategy for Small? If so, what is it? Why? . Is there a dominant strategy for Large? If so, what is it? Why? . What is the likely pair of decisions? What payoff will each receive