Consider the following market for Tim's Terrible T-shirts a firm company producing in the monopolistically competitive t-shirt market. Me $14 $12 ATC $10 $8 Price $6 $4 $2 D MR 0 10 20 30 40 50 60 70 80 Quantity Question 1 Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce? Question 2 At his profit maximizing output, what is the total profit earned by Tim?A small town has only two gas stations, Chevron and Shell. Daily, each station must simultaneously display their prices, choosing between a high price and low price. Assume both firms know their potential payoffs and this is a one-time game (both firms are only interested in today's profit). The payoff matrix for this game, showing potential daily profit, is displayed below. Chevron Decisions High Price Low Price S: $5,000 S: $1,000 High Price C: $5,500 C: $8,000 Shell Decisions S: $7,500 S: $3,000 Low Price C: $1,500 C: $2,800