You manage a store that mass-produces candies by teams of workers using assembly candymachines. The technology is summarized by the production functionq = 3 LKwhere q is the number of candies per week in thousands, K is the number of assembly candymachines, and L is the number of labor teams. Each candy assembly machine rents for r =per week, and each team costs w = $1000 per week. Candy costs are given by the cost of laborteams and machines, plus $600 per thousand of candies for ingredients. Your store has a fixedinstallation of 2 candy assembly machines as part of its design.= $6,000What is the cost function for your store – namely, how much would it cost to produceq candies? What are average and marginal costs for producing q candies? How doaverage costs vary with output?а.b. How many teams are required to produce 3 (thousands) candies? What is the averagecost per thousand candies?You are asked to make recommendations for the design of a new production facility inthe store. What capital/labor (K/L) ratio should the new plant accommodate if it wantsto minimize the total cost of producing at any level of output q?С.

Q = 3KL Where , Q = quantity produced of candies in thousands K = Capital /Machine L = Labor…

You manage a store that mass-produces candies by teams of workers using assembly candy machines. The technology is summarized by the production function q = 3 LK where q is the number of candies per week in thousands, K is the number of assembly candy machines, and L is the number of labor teams. Each candy assembly machine rents for r= $6,000 per week, and each team costs w = $1000 per week. Candy costs are given by the cost of labor teams and machines, plus $600 per thousand of candies for ingredients. Your store has a fixed installation of 2 candy assembly machines as part of its design. a. What is the cost function for your store – namely, how much would it cost to produce q candies? What are average and marginal costs for producing q candies? How do average costs vary with output? b. How many teams are required to produce 3 (thousands) candies? What is the average