Answer all of the following questions for a total of 15 marks 1. Perfect Competition Consider the following diagram of a competitive firm Price/Costs ($) 4.50 ATC 3.00 AVC 1.50 500 600 670 Quantity Figure 1. Competitive firm (Widgets per hour) a) What is the profit maximising quantity the firm should produce at a price of $4.50? Briefly explain (3 Marks) b) Calculate the firm's profit (loss) at a price of $4.50 (Hint: Approximate ATC from diagram)