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Question 1 Sweetie Juice is one of the many shops producing and selling watermelon juice in the Hope Town. Sweetie Juice incurs a fixed cost of $50,000 per month. Table 1 illustrates the cost schedule of the shop and Table 2 illustrates the demand and supply schedule of the market for watermelon juice. Production Average Price Quantity Quantity Output Variable Cost ($ per litre) Demanded Supplied (litres per ($ per litre) (litres per (litres per month) month) month) 0 0 100 2,000,000 400,000 1,000 52 120 1,600,000 800,000 2,000 44 140 1,200,000 1,200,000 3,000 76 160 800,000 1,600,000 4,000 97 180 400,000 2,000,000 5,000 115 200 0 2,400,000 Table 1 - Cost schedule of Sweetie Table 2 - Demand and supply schedule of the Juice watermelon juice market (a) Based on the information given, construct ONE new table for Sweetie Juice including the column of quantity and add new columns of total cost, marginal cost and average total cost. Round all figures to integer, if applicable. Quantity Total Cost Marginal Cost Average Total Cost (liters per month) ($) ($) ($) (Remarks: Significant mark deduction applies if the table is broken into 2 parts or 2 tables) (3 marks) (b) Explain and determine the selling price and profit-maximizing quantity of Sweetie Juice. What is the amount of economic profit (loss) made by the shop? Show your workings. (5 marks) (c) With the aid of a market-firm diagram, illustrate the above circumstances with all critical values related to price, quantity, cost and profit (loss) condition. No explanation and no average variable cost (AVC) curve is needed. (5 marks) (d) A recent medical research reported that watermelon juice is high in carbohydrates and can cause blood sugar spikes. The research even linked drinking watermelon juice with a higher risk of type 2 diabetes. Sweetie Juice records an economic loss after the release of this research report. Explain and illustrate this new situation of the watermelon juice market and Sweetie Juice in the same market-firm diagram of part (c). No average variable cost (AVC) curve is needed. (7 marks)