Problem
1. What happens to the difference between ATC and AVC as a firm's output expands? Explain.
2. How would you distinguish between the short run and the long run?
3. What are economies of scale? Please give an example. What are diseconomies of scale? Please give an example.
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.