In Australia, there are over 400 avocado farmers that face no barriers to entry and produce standardised avocado. Typically, the price for avocado increases around the Christmas season. The price for avocados has risen from $1 to $2 per each. The total revenue changes from $20 million to $24 million respectively. On the other hand, banana production increased from 30 million kg to 38 million kg. Questions What type of market structure is the avocado industry in Australia according to the above information? Justify your answer. [2 marks] Based on your answer to the previous question, what type of profits would these firms make in the long-run? [2 marks) Based on the information above, using the "Total Revenue Rule" without calculation, are avocado prices elastic or inelastic? Justify your answer. [2 marks] Assume the inverse demand function for avocado can be written as P = 7 - Q. When P = $2, calculate the point price elasticity of demand (PED) for avocado. Interpret your answer. [2 marks] Calculate the cross-elasticity between avocados and bananas. Are avocados and bananas substitute or complement? Explain. [2 marks]