8 (15 points) Q8. Producer Theory i. In the above figure, the efficient scale of output is at a price of_________________. ii. The above table gives the total cost schedule for oil changes at the...

8 (15 points) Q8. Producer Theory i. In the above figure, the efficient scale of output is at a price of_________________. ii. The above table gives the total cost schedule for oil changes at the local Jiffy Lube.a. What is Jiffy Lube’s total fixed cost?b. What is the total variable cost of 2 oil changes?c. What is the average variable cost of 4 oil changes?d. What is the average fixed cost of 2 oil changes?e. What is the marginal cost of the 3rd oil change?iii. Suppose that a firm’s cost per unit of labor is $50 per day and its cost per unit ofcapital is $100 per day.a. Draw the isocost line for a total cost per day of $10,000. (Base case) andDraw the isoquant curve when this firm is producing efficiently, assumingoutput is 100 units. 9 b. If the price of capital decreases to $50 and other things remain constant,show the effect of a decrease in price on the producer’s equilibrium. (Drawon the same figure in part a)c. If the total cost increases to $20,000, other things remain constant, pleasedraw the new isocost line and new isoquant curve, compared to part a. (10 points) Q9. Perfect Competitiona. Please explain and illustrate graphically how the diaper service market has beenaffected by the decrease in the North American birth rate and the development ofdisposable diaper. Explain the long-run and the short-run effects of the event,starting from the long run equilibrium. What happens to the price of diaper and thequantity of diaper in the market and a representative individual firm? (Show twodiagrams for both market firms and an individual firm)