4. There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per kilometre to set up. How much would it cost to fence a single property whose area is one square kilometre if that property also happens to be perfectly square, with sides that are each one kilometre long? How much would it cost to fence exactly four such properties, which together would contain four square kilometres of area? Now, consider how much it would cost to fence in four square kilometres of ranch land if, instead, it comes as a single large square that is two kilometres long on each side. Which is more costly—fencing in the four, one-square-kilometre properties or the single foursquare-kilometre property? [LO8.4]