2) Suppose Lois Lane sells peaches in a perfectly competitive market. Her output per day and her costs are as follows. Suppose the current equilibrium market price for 1 lb of peaches is $10. a. Fill in the gaps in the following table for Lois Lane's peach farm. Answer: points) Q, lbs TC TFC ATC AFC AVC MC MR 0 20 undefined undefined undefined undefined 1 32 32 20 12 12 2 37 18.5 10 8.5 5 3 46 15.3 6.67 8.63 9 4 61 15.25 5 10.25 15 5 75 15 4 11 14 6 92 15.33 3.33 12 17 7 113 16.14 2.86 13.28 21 8 136 17 2.5 14.5 23 The graph below uses the numbers from the above table to show Demand, MR, MC, ATC and AVC curves. Use this graph to answer the following questions 35 30 25 20 15 10 no 1 2 3 4 5 7 8 b. In the given graph, label both axes and each of the curves to show where D, MR, MC, ATC and AVC are. (3.5 points) C. What is Lois Lane's optimal level of production? Show the unit of account. Answer: points) d. Briefly explain your answer in part c). Answer: (4 points) (4