Question 2 [ 35 MARKS] Universal Locks Company, producers of door locks produces locks by hiring labour in batches of 10. The price of labour is *20 per day. Twenty (20) units of capital ate used each day regardless of output level. The price of capital is 250 per unit a) Use the above information to fill the table below Labour/Day Output/Day MP AP TC AC AVC MC 200 20 20 440 700 1000 1250 1400 1500 1450 1410 1400 20 NB: Without any labourer, output is 0. MP = Marginal Product: AP=Average Product; TC = Total Cost, AC = Average Cost; AVC = Average Variable Cost: MC = Marginal Cost, AFC-Average Fixed CostFill in the blanks for Labour MP. AP, TO, 46, AVC and MC of labour. What is the relationship between AVC and ARC? Whye (15 Marks) What is the relationship between MC and A Ver MC and ATC? Why? (4 marks) Calculate the AFC at each level of outputfor Universal Lacks Company and explain its shape. (4 Marks) Does Universal Locks experience diminishing returns? If year after the employment of how many labourers does it set in? (2 Marks) b) "It the law of diminishing marginal returns does not hold, it will be possible to grow the global food supply in a flowerpot." Briefly explain why this statement is true. (4 Marks) c) If the price of each door lock is 0.8 GHC, can we infer from the table how many labourers Universal Locks should employ to be efficient Explain your answer (6 Marks)