Question 1 (5 pts) Donut stores are making their way to Halifax! What a great time to be alive! The following graph provides you with a plausible cost diagrams for one of the stores (store 1: Vandals). The donuts are sold at a market price of $2.50 apiece. Assume the total Market for donuts in Halifax is 2 Million donuts. MC ATC AVC Price of Donut 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 P=MR 0 600 1200 1800 2400 3000 3600 4200 4800 5400 6000 DonutsHow many donuts is the rm making? How do you know? Is store making a profit? How much? If the only fix cost they have is rentJr how much is it (a good guess can be taken easily at q=1200)? If the firm believed that it was making the most profit if it produced 1200 donuts, what would you tell them? And how would you prove your