Economics N27 1. Consider a company operating in a perfectly competitive industry. It uses labour [L] and capital {K} to produce its output following the production function Fit, K] = 1H. + (N + BK. Prices of inputs are vv and r respectively. a] Assume that the amount of capital is fixed at K = i in the short run. Find and draw the firm's total cost, average cost, marginal cost, and supply functions in the short run. b] Establish the returns to scale of the firm's technology, and find its total cost, average cost, marginal cost and supply functions in the long run