Question: Draw a long-run average total cost curve with four short-run average cost curvesnested inside of it. Label the four average cost curves SRAC], SRACZ,SRAC3, and
Draw a long-run average total cost curve with four short-run average cost curvesnested inside of it. Label the four average cost curves SRAC], SRACZ,SRAC3, and SRAC4, where the higher numbers indicate average cost curves for larger productions. Also, draw a star next to each SRACcurve with increasing returnsto scale, a square next to each SRACcurve with constant returns to scale, and acircle next to each SRACcurve with decreasing returns to scale.
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