Let us consider the cost implications of the short-run production schedule from assignment number 7, where capital was fixed at 2 units of capital. Labor H m O a Output O 180 255 315 360 390 405 In this scenario, since we only have two inputs (Capital and Labor), and since the amount of capital is fixed, the cost of total cost capital would also be Total Fixed Cost (TFC) and since labor is variable, the total cost of labor would be Total Variable Cost (TVC). In that context, assume that the cost of capital is $100 per unit of capital per period, while the cost of labor (or wage rate) is $50 per unit of labor per period. (a) Use this information set up a diagram (using excel) that shows total cost (TC) and total variable cost (TVC) of the firm per period in the short run with the level of output on the horizontal axis. (b) Also, use this information to then set up another diagram showing the firm's short run marginal cost (MC), average total cost (ATC), and average variable cost (AVC), with output on the horizontal axis (For the marginal cost, remember that when you graph marginal values you should always put them in the middle of the horizontal range that they are calculated over). (c) Copy both your charts into a Word or pdf file that also has a short essay about the relationship between marginal cost (MC), average total cost (ATC), and average variable cost (AVC). As part of that essay, make sure that you carefully explain how the shapes of these 3 curves are related. Please upload your answer as one single Word or pdf file that will be reviewed by Turnitin for originality