4. a. Based on the graph below, is making money or losing money? Explain how you know. b. Suppose Wally produces. Find the ideal level of output and shade an area that represents his profit or losses. C. Suppose Wally shuts down. Shade an area that represents his profit or losses. d. Should Wally produce or shut down? Why? e Does Wally's situation resemble the situation faced by airlines in the case? If not, re-draw the figure to illustrate the situation airlines were operating in. Then, repeat your analysis from above for the airlines. Wally's Waffle Fries MC ATC AVC Costs, price ($) P d = MR = P Pounds of waffle fries per month3. Use the graph below: 1. Find the profit-maximizing level of output and label it q. 2. Shade an area that represents the firm's total revenue. 3. Shade an area that represents the firm's total costs. 4. Shade an area the represents the firm's profits. 5. Would you expect entry, exit, or neither in the long run?LL Share Comments Wally's Waffle Fries MC ATC $0.80 d = MR = P Costs, price ($) Pounds of waffle fries per month