Output Labour Labour (10 (20 units of units of capital) capital O UT A W N H 3. Consider the following costs. Refer to the schedule provided on page 1 (copied above) K costs $400 per unit L costs $700 per unit a. Calculate production costs Output 10 units of capital 20 units of capital TC FC VC ATC MC TC FC VC ATC MC 1 6,800 4,000 2,800 6,800 2,800 10,100 8,000 2,100 10,100 2,100 IN 3 4 5 6 b. In the space below, graph fixed and total costs when the firm is using 20 units of capital. Shade the area that represents variable costs. LABEL FULLY. c. Describe how FC, TC and VC change in the other scenario with 10 units K. Would fixed costs be higher, lower or the same? Would variable costs be greater or less