Consider Tiger Bakery, a bakery business.

Suppose Tiger Bakery has a production function Q=F(L,K)=10L+50K, where L is the hours of bakers, and K is the hours of deploying auto-baking machines.

Suppose the hourly wage for baker L is w=$20, and the hourly rental price for the auto-baking machine is r=$25. Suppose Tiger Bakery considers producing 500 batches of bread, i.e. Q=500.

A- Calculate the MRTS between L and K.

B- Based on your answer in part A, if you were to use 10 more hours of bakers, how many hours of auto-baking machines can you let go of and still produce the same quantity of output? i.e. what is DeltaK if DeltaL=10

C- Solve for the optimal input choices L* and K* for Tiger Bakery to produce Q=500. (Hint: a corner solution)

D- Based on your answers in part C, compute the lowest total cost (TC1) to produce Q=500.

E- Suppose the industry of auto-baking machines experiences a supply-chain shock and raises the rental price to r=$160. Use your answer in part C, compute the new cost in the Short Run, TC2.

PLEASE SHOW ALL WORK- INCLUDING ANY GRAPHS DRAWN TO ASSIST WITH EXPLANATION.

THANK YOU!!!! XOXOXOXOX