3. What size factory (K) should the firm build if they want to minimize the cost of producing the different levels of output (Q) given in the table below? Amount of capital that minimizes costs O 1 M 22 4. Complete the following table by identifying the level of output that minimizes ATC for each level of capital employed. (For example, if the firm uses K=1, at what level of output (Q) is the ATC minimized and what is ATC?) Q that minimizes ATC ATC Capital (K) 1 2 3 4 5. Describe the scale economies or diseconomies that result as the firm expands from K=1 to K=2 to K=3 to K=4. 6. If the widget market is perfectly competitive, what level of capital will be optimal for XYZ Corporation? 3. What size factory (K) should the firm build if they want to minimize the cost of producing the different levels of output (Q) given in the table below? Amount of capital that minimizes costs O 1 M 22 4. Complete the following table by identifying the level of output that minimizes ATC for each level of capital employed. (For example, if the firm uses K=1, at what level of output (Q) is the ATC minimized and what is ATC?) Q that minimizes ATC ATC Capital (K) 1 2 3 4 5. Describe the scale economies or diseconomies that result as the firm expands from K=1 to K=2 to K=3 to K=4. 6. If the widget market is perfectly competitive, what level of capital will be optimal for XYZ Corporation