3. You have found insider information from ABC Chocolate company on the cost of producing regular chocolate (R) and premium chocolate (P). The firm's cost function is: C(RP) = 100+ 2R + 3P+2RP for R 20 and P >0. Both R and P are measured in millions of kilograms per year. a) If either product is produced alone, i.e., C(R,0) and C(OP) would it have minimum efficient scale? Or would it have increasing or decreasing returns to scale? Explain b) Are there scope economies in production of these two products? Demonstrate how you came to this conclusion. Would there be economies of scope for R=4 and P=12? c) Derive an expression for the Ray Average Cost (RAC) function when the firm produces 2 units of regular chocolate for every unit of premium chocolate