answer to the following questions.

Figure 13-16 Couls and dollars 21 14 110 140 Quantity (haircuts MR por week) Q27. Refer to Figure 13-16. Figure 13-16 depicts a monopolistically competitive barber shop. Use the diagram to answer the following questions. Suppose the average variable cost of production is $15 when output equals 110 haircuts and $15.25 when output equals 140 haircuts. i) If the firm wants to maximize its profit or minimize its losses, how many haircuts will it produce and what price should it charge? Show your work. ii) Is it worthy to produce or shut down in the short run? Explain your answer. (3pts) b. Calculate the firm's profit or loss. Show your work. (2pts) Suppose the barber shop depicted in the diagram remains in the industry. Is this barber shop c. likely to produce this same quantity of haircuts as in part (a) in the long run? Briefly explain your reasoning. (2pts)Table 17-5 Number of Oil Changes Marginal Marginal Revenue Mechanics per Day Product Product 6 12 W N 17 4 21 5 24 6 26 Q28. Refer to Table 17-5. Oil Can Harry's, a new automobile service shop, is ready to start hiring. The table above shows the relationship between the number of mechanics the firm hires and the quantity of oil changes it produces. a. Suppose the price of an oil change is $20. Complete the table by filling in the values for marginal product and marginal revenue product. Show your work. (2pts) b. Oil Can Harry's is an input price-taker. Suppose the wage paid to mechanics is $80 per day. What is the profit-maximizing number of mechanics? And briefly explain your reasoning. (2pts) c. Suppose the wage rate is $60 per day and the price of an oil change is now $15. (3pts) (i) What happens to the firm's demand curve for mechanics? Briefly explain. (ii) What happens to the profit-maximizing quantity of mechanics? Briefly explain