In the table below, identify points on the firm’s LAC curve. Then graph the LAC curve.

Over what ranges of output are there economies of scale? Constant returns to scale?

Diseconomies of scale?

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2 Units of Capital 4 Units of Capital 6 Units of Capital 8 Units of Capital Output, Average Output, Total Cost, Average Total Cost, Output, Average Total Cost, Output, Average Total Cost, Q ATC ATC ATC ATC 5 $40 5 $60 5 $80 5 $100 10 20 10 30 10 50 10 70 15 15 15 10 15 25 15 50 20 20 20 15 20 9 20 30 25 40 25 35 25 5 25 15 30 70 30 60 30 20 30 5 35 110 35 90 35 40 35 15 40 160 40 130 40 80 40 30