Assume that the flour market is perfectly competitive and the price of flour is determined by the market at $9 per kg.Tony owns a mill and sells 10 kg of flour per day.At this output 10 kg, Tony has an average variable cost of $6, an average fixed cost of $2 and a marginal cost of $8 per day.Calculate Tony's profit or loss at the output 10 kg of flour per day.What should Tony do if he wishes to earn more profit? Explain.