You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production. Output = 1250 pounds, market price = $2.00, total cost =$7500, fixed cost=$5625, marginal cost=$2. The minimum of AVC occurs at {1000 pounds at $1} and the minimum of ATC at {1600 pounds at $4). Please help Jack with the following questions based on the above figures: a. Is Jack making positive profit? Please calculate total profit/loss. b. Draw a graph for the raw cotton market and a graph for Jack's farm current situation that includes MC, ATC, and AVC, labeling all relevant points on axes with numerical values. Label the total profit/ loss area. c. What is the average variable cost at the profit maximizing quantity of 1250? d. Suppose more farmers exit the raw cotton market until the market price is $3.00 per pound. On the same graphs in (b) above, show the effect of this change in the market price