Using the table provided - complete the calculations using $27/unit of capital AND $18/unit of labor costs. Assume - at each level of output - that Capital inputs increased by 20% and that Labour units decreased by 30% due to automation. WHEN are increasing returns to scale present? At WHAT output is MES achieved?

11. (LO 3 4)) The inputs and outputs for Yogi Soft Drinks Inc. are as shown in Table 7.10. TABLE 7.10 INPUTS Output Capital Labour Total Cost LRAC 100 200 N 300 7 IIIIII IIIIII 400 11 500 18 600 6 30 a) If capital costs $30 per unit and labour costs $15 per unit, fill in the blanks in the table. b ) When are increasing returns to scale present? c) At what output is MES achieved