microeconomics

Question 6 (LO1 & LO4) Melody owns a business giving guitar lessons. Assume that the market for guitar lessons is perfectly com- petitive and that the equilibrium price of a guitar lesson is $30. Melody's total costs vary depending on the number of guitar lessons she offers each day, as shown in the table below: Quantity of Guitar Lessons (per day) Total Cost ($) 0 30 1 50 2 70 3 90 4 120 5 160 6 210 a) Calculate Melody's marginal cost and average variable cost for each additional gunitar lesson.[5 marks| b) Determine the profit-maximizing level of output for Melody's guitar lesson business.|5 marks] c) If Melody's fixed costs are $20, calculate her total costs, total revenue, and profit at the profit- maximizing level of output.[5 marks| d) Explain what Melody should do if the market price for guitar lessons decreases to $20. Should Melody shut down? [5 marks|