PART A: Perfect Competition Costs !10 marks! The following hypothetical data is for a period of one month for a farm in Canada that produces one commodity in an industry that is theoretically close to perfect competition . Assume that there are no goverrmient price support programs in effect for this commodity. Fixed Overhead Costs Machinery ICosts $1,500 Administrative Salaries 2,500 Utilities and Other Overhead Costs 2,000 Direct Production Costs Following are direct production costs for a range of production from 600 units to 1600 units. Quantity Production 1. Use the data to calculate the following for each quantity and present Costs an Excel chart with the results. (2 marks) a} Fixed Cost, Variable Cost and Total Cost b) Marginal Cost per unit (Divide MC by 100 to get MC per unit data is presented in increments of 100 units} c) Average Fixed Cost, Average Variable Cost, Average Total Cost 2. Using your Excel chart, graph the following: Marginal Cost, Average Variable Cost, Average Total Cost (2 marks) 1600 13100 3. If the market price is $13.00 per unit, identify the level of production where the net profit will be maximized . Calculate the amount of prot at this point and the prot per unit. (2 marks) 4. Identify the quantity and price at which the rm will breakeven. Explain. (1 mark) 5. If the market price falls to $9.00 will the rm continue to produce ? Explain with reference to average costs . (2 marks) 6. Identify the price at which the rm will want to shut down production. Explain. (1 mark)