18, Consider the diagram at the right of SRATC and LRAC curves. The SRATC curve is drawn for a given plant size. a. Given a plant size associated with SRATC, the level of output that minimizes short-run average costs is (1) Unit costs in the short run at this level of outputare (2) b. Given a plant size associated with SRATC, the level of output that is optimal in the long run is (3) . Unit costs in the short run at this level of output are (4) c. Explain the economics of why (31 is greater than 04. (21 is associated with the (5) while c4 is associated with the (6) . The point that has a unit cost of (34 corresponds to a curve that is associated with (7) where the firm can take advantage of (8) of scale. d, Suppose the firm wants to increase output to Q2 in the short run. Unit costs in the short run would be (9) This can be accomplished by (10) e. Suppose the firm wants to increase output to 02 in the long run. Unit costs would be (11). This can be accomplished by (t 2) (l) 0 Q1 (2) O 02 (3) O Q0 (4) O co (5) 0 long run (6) O shortrun (7) 0 more labour 0 Q0 0 c1 0 Q2 0 c1 0 short run 0 long run 0 bettertechnology 0 Q2 O c0 0 Q1 0 Cs O alarger plant 0 03 O (:2 (12) 0 increasing labour O increasing plant size O improving technology (8) O economies O diseconomies Cost per Unit (55) E 0000 co 02 c1 '33 Q0 Q1 02 Output (10) O increasing plant size 0 increasing labour O improving technology (11)