Short-Run Cost A bicycle manufacturer has the following short-run production schedule below (columns A and B). Assume fixed cost is $1200, while the cost of a unit of the variable nput, labor hours, is $30. to the following: art 1 (Table and Questions): Complete the table and answer questions below the table. Part 2 (Scenarios): Answer the questions based on the described scenarios. Part 1: Production Cost Table: Labor Hours Marginal Total Fixed Total Variable Total Cost 1a. Based on the data in the table. at what level of output is mareinal cost (MC) the lowest? LOWEST MC: 1b. At the output level given in n in 1h. and using values above. calculate average variable, average fixed, average total, and marginal cost. Average Fixed Average Co Average Total Marginal Cost Part 2 (Scenarios): Scenario 1: Suppose a decrease in premiums for workers' compensation insurance causes the hourly labor cost to fall from $30 to $28. each measure in the mate ids to how that measure is affected (increase, decrease, or no change) by the change in labor hour cost. Marginal Product har Variable Goat Scenario 2: In response to the decrease in labor-hour cost (Scenario 1), the bicycle manufacturer increases the number of labor hours employed. (NOTE: For this scenario, assume the bicycle manufacturer is always operating within Stage II of the production function.) 2b. For each measure in the matrix below, mark an "X" in the cell that corresponds to how that measure is affected (Increase, decrease, or no change) by the change in labor hours employed. Marginal Cost Scenario 3: Suppose the bicycle manufacturer purchased $600 worth of hand brakes one year ago at a time of elevated prices due to severe supply chain bottlenecks. Today, the supply-chain issues have subsided, but this has permanently reduced the value of the hand brakes still held in inventory to $500. 2c. From an economic standpoint, what would be the cost to the manufacturer of using the hand brakes today in production? 6. $100 - $500 L $600 2d. What are the sunk costs associated with the hand brakes still held in inventory? 1b. $100 C. $500