a) Here is the cost structure for Frodo's store. Fill in the blanks. Average Average Average Fixed | Variable Total Fixed Variable Total Marginal . Costs Costs Costs Costs Costs Costs $100 $130 o | || oo | | 0 p ings | 50 | so0s sars ongs | s0 | siso b) Draw the exact cost structure for Frodo's firm using the numbers in the table. Show all average and marginal cost curves. Show his breakeven and shutdown points. Show his supply curve (might want to use graph paper). c) Frodo pays out $20 for rent and insurance and $180 for labor and precious gems and metals to make his rings. Due to his superior organizational skills, he used to make $30 to run the Minas Tirith branch of Elrond's antique shop before he opened his ring store. Classify each of these costs as implicit or explicit and fixed or variable. If Frodo's revenues are $210, is he making an accounting profit or loss and how much? |s he making an economic profit or loss and how much? d) Frodo's store competes in a purely competitive industry. What are the 3 characteristics of this market structure? In addition, indicate if the structure is a price_taker or price searcher. e) Draw the purely competitive ring market and his purely competitive firm that is making economic profits. Show the profits. At what point does Frodo produce? f) Can Frodo keep his profits in the long run? Why or why not? Explain your answer in detail by words and graph. Draw all the dynamics in the firm and market and indicate all impacts on both the firm's and the market's equilibrium price and quantity. g) Once the Gondorian soldiers have been released from military service, they are available as labor resources and wages go down, lowering costs for all businesses. Draw the impact on the purely competitive ring market and Frodo's purely competitive firm in the short run. Show any profits or losses. Does Frodo produce? Why or why not? If he does produce, at what point does Frodo produce? (start with the firm and then go to the market next question) h) What happens to Frodo's competitive firm in the long run? Explain your answer in detail by words and graph. Draw all the dynamics in the firm and market and indicate all impacts on both the firm''s and the market's equilibrium price and quantity. i) Next, one half of the residents of Gondor move out of the city to Ithilien (where there is a large shopping mall) after the end of the War of the Ring. Draw the impact on the purely competitive ring market and Frodo's purely competitive firm in the short run. Show any profits or losses. Does Frodo produce? Why or why not? If he does produce, at what point does Frodo produce? i) What happens to Frodo's competitive firm in the long run? Explain your answer in detail by words and graph. Draw all the dynamics in the firm and market and indicate all impacts on both the firm's and the market's equilibrium price and quantity. k) Draw Frodo's firm in long run equilibrium. What condition(s) must be true for long-run equilibrium? 1) Is the output of Frodo's firm efficient? Why or why not? If any efficiency is being achieved, what kind(s) and exactly why for each kind