2. The XYZ Company, anticipating a downturn in its sales, closed one of its factories at the end of 2017. During 2018, usage of a_ll inputs declined to a level of 75% of the previous year's level, While output fell to 80% of the previous year's level. The XYZ Company was operating in the range of increasing returns to scale (i.e., economies of scale). (8 pts)