1. (14 points). You run a company called Dawg Tags, which prints dog tags and resides in a perfectly competitive industry. The industry demand for dog tags is characterized by P=42-(^Qd/₁₀). Table 1 below contains the relationship between firm level quantity and total variable costs (TVC).

Table 1: Firm level quantity and costs

Dawg Tags
Quantity	TVC ($)	MC	TFC	TC	ATC	AVC	AFC
1	5
2	13
3	25
4	43
5	79

1. i. Find the missing MC, TFC, TC, ATC, AVC and AFC in Table 1 above. Assume each company must incur a fixed cost of $6 for use of machinery. (2 points)

ii. Use excel to plot one graph that includes MC, ATC, AVC and AFC curve. (3 points)

1. Consider a short-run scenario: While the industry supply curve includes 100 firms with identical cost structures. The market price for dog tags is currently $12.
   1. What is the short-run profit maximizing quantity for Dawg Tags? (1 points)
   2. What is the short-run market equilibrium quantity? (1 points)
   3. What are the short-run profits for Dawg Tags associated with the profit maximizing quantity? (1 points)
   4. Fill in the missing values below associated with the industry supply curve. (Hint: 100 identical firms are in this industry) (2 points)

Dog Tag Industry supply schedule
Quantity Supplied	Market Price
-	$5
200	-
300	$12
400	-
-	36