Ignore the top message ^ that says "Question 1 Option A and E are WRONG" just ignore that please. I need help answering the bottom questions attached in the picture which says "Option 1" PLEASE SHOW WORK AND CALCULATIONS AND EXPLANATIONS

of the good. Assessment Option 1 Option 2 Rubric The firm Narwhals R Us produces food for narwhals. The business is operating in a competitive industry and experiences the following: marginal revenue = $7 marginal cost = marginal revenue at $7 marginal cost = average variable cost at $4 marginal cost - average total cost at $6 (a) Draw an accurately labeled graph of this firm's production with MC, MR, AVC, and ATC all represented. Label the profit-maximizing quantity Opm (b) Explain how to determine the profit-maximizing level of production, (c) if the average total cost (ATC) is $5 at the point that MC = AVC, what is the average fixed cost (AFC) at that point? (d) Is the firm earning economic profit or incurring a loss? Explain. (e) On your graph from part (a), shade the area of the firm's profit or loss. Download