Problem
Charles Cobbler, Inc., maker of fine shoes, could tan the 1,000 units of leather needed for use in its shoes or it could purchase leather from a tannery that produces 10,000 units of leather and supplies numerous shoe producers. Draw a long-run average cost curve and illustrate how economies of scale would enable Charles Cobbler to purchase the leather at a lower cost, C', than if it produces its own at cost C.
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.