solved Question One (25 points)a)What will happen to the equilibrium price

Question One (25 points)a)What will happen to the equilibrium price and quantity of fuel cars if the prices of electric cars decreased. Explain your answer. (9 points)b)What will happen to the equilibrium price and quantity of fish if the wage paid to the workers in fishing increases? (9 points)c)Discuss the validity of the following statement: “If the price of a particular good increase the demand for that good will decrease” (7 points) Question Two (25 points)Based on the following table, answer the questions below: Output TCTFCTVCATCAFCAVCMC0$1001$302$603$2104$805$60a)Complete the table below based on the relationships among the various cost functions. (18 points)b)If the marginal revenue equals $200, what is the level of production that maximize the profits of producer? Explain your answer. (7 points)Question Three (25 points)a)What is the difference between marginal cost and average cost? Support your answer with numerical example. (3 point)b)The behavior of long run average cost determines what is known economies of scale, constant return to scale and diseconomies of scale. Discuss and explain that providing real world examples. (8 points)c)Based on the information provided in the table below:i.Describe the impact of the cost behavior on economies of scale, constant returns to scale, and diseconomies of scale in each firm? Calculate the average cost for each firm to justify your answer. (9 points)ii.what is the value of fixed cost in each firm? (5 points)OutputTC firm 1TC Firm 2TC Firm 30$1200$3000$201$1500$7000$502$2800$15000$1003$3900$24000$1504$4800$36000$5005$5500$50000$10006$6000$72000$2400Question Four (25 points)a)What is the important decision taken by the firm that depend on the relationship between Marginal Revenue and Marginal Cost together? Explain your answer. b)What should a firm do if it realizes that its marginal revenue is more than its marginal cost? (10 points)c)Explain the difference between economic profits and accounting profits. (15 points)Best wishes