(a) If a firm enjoys increasing returns to scale up to a certain output level and then constant returns to scale, what can you say about the shape of the firm's long-run average cost curve? (b) Assume a computer firm's marginal cost of production is constant at $1000 per computer. However the fixed cost of production are equal to $10 000. Calculate the firms Average Variable Cost (AVG) and average total cost (ATC). (c) Say you are considering whether to y or take the bus form Melbourne to Canberra. The airfare is $100, and the ight takes 1 hour. Bus fare is $50 and takes 6 hours. Which is the most economical way to travel for a businessperson whose time costs $50 per hour? A student whose time is worth $5 per hour