Question 1 cing and selling salt. The market Natural Salt is one of the 350 price-taker rms in Country X produ ' price of salt is $16 per bag and Natural Salt has a fixed production cost of $13,000. The rm 5 variable cost schedule is shown in following table. (3) Construct ONE new table based on the above data, which includes the following columns to calculate Natural Salt's total revenue, average variable cost, average total cost and marginal (4 marks) cost. Round your answers to one decimal place if applicable. Quantity Total (bag) Revenue {$1 Variable Cost Total Cost (5) What is the competitive equilibrium condition of a pricetaker rm? Determine the prot- maximizing output, price and economic profit (loss) of Natural Salt. (4 marks) (bl Draw a set of market-rm diagram to illustrate the situation of Natural Salt. Label the critical points with relevant gures, including the equilibrium price, equilibrium quantity, marginal revenue, prot maximizing quantity, average total cost and average variable cost at the profit maximizing quantity. Label the area ofprot (loss) too. No workings and explanation are needed. (6 marks) (Cl (d) Suppose many new salt producers enter the market and so the Natural Salt is in bad times now. in spite of this, the firm will continue the operation in the short run. Explain and illustrate these changes in the same diagram of part (c). (6 marks) Question No.: I A Marker'TUse W ' f aigfiegw'...).___';.i