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Question 2: Leia owns a firm that uses capital (K) and labor (L) to produce rubber bands. Her firm's capital is used to rent robots. It takes 1 unit of capital to rent 1 robot for 1 month, and the firm cannot rent part of a robot. She can rent up to 2 robots, but no more. Therefore, the firm is only able to use 0, 1, or 2 units of capital. Unlike robots, she can hire any amount of labor between 0 and 4 units (including partial units). Her firm's monthly production function is F(L, K) = L + 6K. She must pay $1 per unit of labor she hires and $3.5 per robot she rents. At the start of the year, Leia signed a one year lease that costs her $1 per month. a) Solve the cost minimization problem for the Leia's firm at each level of output in Table 1. Fill in Table 1 (or make an equivalent table) with the levels of L and K that minimize cost at each output level, along with the associated variable and total costs. Hint 1: don't forget the firm can always throw away unused output. Hint 2: for a given output level, try evaluating the minimum cost for each possible number of robots Leia could rent. Table 1: Leia's Rubber Band Company Variable Output L K Total Cost Cost AVC ATC MC 1 IN 12 13 14 15 16 b) Find the AVC, ATC, and MC values for each level of output in Table 1. Using any graphing software you like, plot the AVC, ATC, and MC curves. Plot MC at the higher of the two associated output levels (i.e. plot the first value of MC at output=2, the second value of MC at output=3, etc.). Hint: unlike what we've seen in class some of your curves may have multiple (local) minimum values