1.Imagine Amelia owns a startup - Swanky Dog Inc. - a firm that sells high-end winter coats for dogs. Dog coats sell for a constant price $100 each. She only has enough capacity in her home facility to produce a maximum of 10 coats per week.

The fixed costs of production are $110. The total variable costs are as follows:

Swanky Dog -- Premium Winter Doggie Coats (Keep fido cosy!!)

PMR(Q)QTR(Q)FCVC(Q)TC(Q)AVCATCMC(Q)MR(Q)Profit100011001001110551002110841003110122100411017010051102501006110350100711050010081106701009110880100101101108

• a. Using the given information, create the above table in Excel. Use formulas to find the missing values and fill the table completely (use the definitions for these objects).

• b. After finding all values in the worksheet, determine what the profit-maximizing quantity Q* is for Amelia's firm. How can you tell?

• c. Plot the data. In one plot, show ATC, AVC, MC(Q), and MR for Q=[0, 10]. Where does MC(Q) intersect ATC and AVC. Paste this into your write up.

• d. In a separate plot, show Profits as a function of quantity produced over Q=[0,10] (that is, the profit function).Paste this into your write up. At what Q does the profit curve peak?

• e. Identify as closely as possible this firm's shut down and break-even points. Should this firm remain open, given the current structure?