1. The following table describes the short-run production relationship for a firm that produces long-term nursing care. It operates nursing homes in a number of different communities. It produces a single output, Q, i.e. the number of patients housed in a given facility. It uses two inputs, L, healthcare workers, and K, physical facility and healthcare equipment. Suppose that the daily per unit price of L is $200 and the daily per unit price (implicit rental rate) of K is $200. Suppose the firm decides to build a small-sized nursing home in a particular community, i.e. it chooses K=1. Using information from the table, sketch the firm's short-run average fixed cost, average variable cost, and average total cost curves in the diagram below, showing specific points on each curve based on your calculations, that correspond to K being fixed in the short run at K=1.

	Labor Input
Capital Input		1	2	3	4	5
1	20	40	55	65	70
2	40	60	75	85	90
3	55	75	90	100	105
4	65	85	100	110	115
5	70	90	105	115	120