1. G&G Cat Food sells cans of cat food to customers. The quantity of output (cans of cat food) and the corresponding number of employees per hour in the following table: Employeesfhr Causfhr ATC{$fcau) AVC($fcau) 0850 Cat Food is a prot maximizing rm in a perfectly competitive market, and each employee earns $20 per hour. Fixed costs come from a 1-year contract for rents paid on the factory, and are the equivalent of $40 per hour. (3) Fill in the table above. (b) If the market price of cat food is $5 per can, how much cat food would (3&6 produce per hour? Calculate the hourly prots at this level of output. (c) What output would be produced if process dell to $1.50 per can? What would prots be in the short run? (d) On the graph below, draw the marginal revenue of this fn'm at a price of $5 per can. Shade in an area representing the prots of the rm. p MC ATC AVC (e) What would happen to the market supply curve in the long run in a situation such as the one shown in part ((1)