4. (a) A micro-entrepreneur produces caps and hats for women. The output-cost data of the business is reproduced below: Output Total Cost 50 870 100 920 150 990 200 1240 250 1440 300 1940 350 2330 Using the above data estimate total cost equation and determine the average and marginal cost functions. Determine the output rate that will minimize average cost and the per-unit cost at that rate of output. The current market price of caps and hats per unit is Tk. 6.00 and is expected to remain at that level for the foreseeable future. Should the firm continue its production? (b) Using the following cost data how would you estimate your short run supply curve. If there are 100 firms in the industry, would be the industry supply? [Hint. Think about the relationship between MC and AVC and find the output supply of a single a firm) MC FC VC ATC AVC OUTPUT 0 1 TC 100 125 145 157 177 2 3 4 5 6 7 202 236 270 8 9 10 326 398 490