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(a) Suppose that this manufacturer discovers a new technology that reduces labour cost significantly. We now have new information in the table below: Quantity of

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(a) Suppose that this manufacturer discovers a new technology that reduces labour cost significantly. We now have new information in the table below: Quantity of Labour Rental of Price per Average cost Total profit laptops cost ($) factory laptop ($) equipment ($) 1 1 10 9 2 2 10 9 3 10 9 4 10 9 5 10 9 6 6 10 9 7 10 9 Calculate the new average cost and total profit and complete the table (10 marks) (b) Sketch the new Average Cost function from the table and comment on the graph (3 marks) (c) If this new situation persists, explain what might happen to the industry in future? (2 marks)

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