Karak Chai is the favourite drink among most in the UAE. It is a simple concoction of loose black tea leaves, evaporated milk, sugar, and a few spices. Omar has rented a kiosk selling Karak tea in Global Oasis. Before the opening day, Omar had incurred fixed costs for rent and Karak-making equipment. The fixed cost can be estimated at AED 310 per day. Also, Omar has calculated the projected variable costs for each given level of Output sold. Omar has set to sell a cup of Karak tea for AED 5(P=AED5) Table 3: Average curves (AFC, AVC and ATC) and marginal cost curve (MC) for Omar's Karak tea business Graph 3: Average Cost curves (AFC, AVC, and ATC) and MC curve for Omar's Karak tea business a. Explain the relationship between the MC curve and the AVC and ATC curves by answering the following: i. Where do the curves intersect? ii. Why does the distance between AVC and ATC curves get smaller as quantity increases? iii. Which of the cost curves is a U-shape? b. Identify the levels of Output where three stages of the marginal returns apply c. Identify the level of Output where Omar should sell Karak Chai is the favourite drink among most in the UAE. It is a simple concoction of loose black tea leaves, evaporated milk, sugar, and a few spices. Omar has rented a kiosk selling Karak tea in Global Oasis. Before the opening day, Omar had incurred fixed costs for rent and Karak-making equipment. The fixed cost can be estimated at AED 310 per day. Also, Omar has calculated the projected variable costs for each given level of Output sold. Omar has set to sell a cup of Karak tea for AED 5(P=AED5) Table 3: Average curves (AFC, AVC and ATC) and marginal cost curve (MC) for Omar's Karak tea business Graph 3: Average Cost curves (AFC, AVC, and ATC) and MC curve for Omar's Karak tea business a. Explain the relationship between the MC curve and the AVC and ATC curves by answering the following: i. Where do the curves intersect? ii. Why does the distance between AVC and ATC curves get smaller as quantity increases? iii. Which of the cost curves is a U-shape? b. Identify the levels of Output where three stages of the marginal returns apply c. Identify the level of Output where Omar should sell