Question 1 [This question uses content covered in module 7.] A firm's total variable cost is given by TV C= 20' + 300, and its marginal cost is MC = 40 + 30. (a) Find the firm's average variable cost. (b) Suppose the firm has already entered the market and is a price taker. In addition, the price level that it faces in the market is $110. To maximize its profit, what is the optimal output quantity that the firm should produce? Find the firm's total revenue, total variable cost, and total variable profit. (c) In a neatly labeled graph, draw the marginal cost function and the price level of $110. Label the regions of total variable cost and total variable profit. Question 2 [This question uses content covered in module 7.] Consider the table below indicating the total variable costs (TVC) for Gisela's cupcake business, as a function of the number of batches of cupcakes she produces each day: Quantity Total variable cost (batches per day) ($/day) 10 20 36 On A CO No 54 75 99 (a) Re-create the above table with additional columns showing Gisela's marginal cost and average variable cost. (b) Consider three different price levels that Gisela might face in the market, as a price-taker: $9, $17 and $20 per batch. At each price, how many batches of cupcakes should she produce each day in order to maximize her variable profit? What will her daily variable profit be in each case