Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm’s total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.)PriceQuantityTotal RevenueFixed CostVariable CostProfit(Dollars per instant pot)(Instant pots)(Dollars)(Dollars)(Dollars)(Dollars)25.00 1,600,000 70.00 1,600,000 100.00 1,600,000 The image is a graph depicting three curves related to costs in economics: Marginal Cost (MC), Average Variable Cost (AVC), and Average Total Cost (ATC). The axes are labeled as follows:- **X-axis (Horizontal):** Represents the quantity in thousands of instant pots.- **Y-axis (Vertical):** Represents the price in dollars per instant pot.**Curves:**1. **Marginal Cost (MC) Curve:** - The MC curve is shown in orange. - It initially decreases, reaches a minimum point, and then increases sharply. - The shape reflects the typical behavior of marginal cost due to economies and diseconomies of scale.2. **Average Variable Cost (AVC) Curve:** - The AVC curve is depicted in purple. - It forms a U-shape, indicating that the average variable cost decreases to a minimum and then rises.3. **Average Total Cost (ATC) Curve:** - The ATC curve is shown in green. - It also exhibits a U-shape but lies above the AVC curve. - The difference between the ATC and AVC curves represents the average fixed costs, which decrease as quantity increases.**Data Points:**- Black diamond markers are placed on the curve, representing specific data points for MC and AVC.This graph is commonly used to illustrate cost relationships and behaviors in economic theory, particularly in the context of production and efficiency analysis.

Profits, in an economic and business context, refer to the financial gains or earnings that a business or individual receives after deducting all costs, expenses, and taxes from their total revenue. In essence, profits represent the positive financial outcome that remains when all expenses associated with the production, operation, and distribution of goods or services have been subtracted from the revenue generated.From the figure above, we can determine the quantity produced using MC curveand AVC using AVC curveTotal Revenue = PriceQuantityTotal cost = Fixed cost + Variable costVariable cost = AVCQProfit = Total Revenue - Total costPriceQuantityTotal RevenueFixed costVariable costTotal costProfit$2530,000750,0001,600,0002530,000 = 750,0002,350,000-1,600,000$7040,0002,800,0001,600,0003040,000 = 1,200,0002,800,0000$10045,0004,500,0001,600,00037.545,000 = 1,687,5003,287,5001,212,500PriceQuantityTotal RevenueFixed costVariable costTotal costProfit$2530,000750,0001,600,0002530,000 = 750,0002,350,000-1,600,000$7040,0002,800,0001,600,0003040,000 = 1,200,0002,800,0000$10045,0004,500,0001,600,00037.545,000 = 1,687,5003,287,5001,212,500