Problem
Suppose you are told that a firm has a long run average total cost that is defined by the following relationship: LATC = 4+48/Q.
(a) Plot this curve for several values of Q in the range 1. . . 24.
(b) What kind of returns to scale does this firm never experience?
(c) By examining your graph of the LATC curve, what will be the numerical value of the ATC as output becomes very large?
(d) Can you guess what the form of the LMC curve is?
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.