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the optimal consumption bundle and denote it by 10. 2. The table shows the production function of Kafka Cafe. Kafka's pays $200 a day to

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the optimal consumption bundle and denote it by 10. 2. The table shows the production function of Kafka Cafe. Kafka's pays $200 a day to rent a commercial oven and pays $20 a day for a baker. Labour Output (trays per day) (bakers Plant 1 Plant 2 Plant 3 Plant 4 day) 1 6 10 13 15 2 10 15 18 20 3 13 18 22 24 4 15 20 24 26 5 16 21 25 27 Ovens 2 3 4 (number) a. Determine Kafka's fixed costs (FC), variable costs (VC), and total costs (TC) for each plant. b. Determine Kafka's average fixed costs (AFC), average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for each plant. c. Graph the ATC curves for Plant 1, 2, 3, and 4. Indicate the long-run average cost (LRAC) curve on your graph. d. What is the long-run cost of producing 13 trays per day? How many ovens should Kafka's rent in the long run in order to produce 13 trays per day? e. What is the long-run cost of producing 24 trays per day? How many ovens should Kafka's rent in the long run in order to produce 24 trays per day? f. What is Kafka's minimum efficient scale? What is the range of output over which Kafka's production function exhibits economies of scale? What about diseconomies of scale? What about constant returns to scale

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