Problem
1. Now consider the cost curves associated with the production functions in the preceding question.
(a) Compute the ATC schedule for the medium plant size and verify that it is U shaped.
2. Now consider the preceding question in the longer term - with variable plant size.
(a) Compute the ATC for the small plant and large plant.
(b) By inspecting all three ATC curves, what can you say about scale economies over the range of output being considered?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.