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2?. Res Carr owns a junk yard which processes used cars into scrap metal. In the long-run Rex can use two methods to destroy cars.

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2?. Res Carr owns a junk yard which processes used cars into scrap metal. In the long-run Rex can use two methods to destroy cars. The rst involves purchasing a hydraulic car smasher which costs $200 a year to own and then spending $1 for every car smashed. The second method involves purchasing a hammer that will last one year and costs $40, and paying his brother Otto Carr to destroy the cars at a cost of $5 each. a] Draw a graph of short-run total cost, short-run average total cost, and short- run marginal cost for each production method. b] What is the minimum number of cars processed per year for which Rex should be willing to purchase the hydraulic smasher? c] Derive mathematical expressions for the TC = FE + VI: = HQ] for the two methods. Then, solve for the minimum number of cars to be destroyed to justify purchasing a hydraulic car smasher

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