Complete the reading in the text $-$ do the "Test Your Understanding" questions as well as the assigned Study Questions.

Match the following:

For the Test Your Understanding question $($click this link$)$

that presents a table on the average costs for three plants:

Which plant is best suited to produce an output of $3$

units?

Which plant is best suited to produce $2$ units?

Which plant is best suited to produce $5$ units?

For the Test Your Understanding question that outline the total

costs and output values to assist with evaluating returns to scale

$....$ WHAT are the results for FIRM one IF the output is increased

to $187\mathrm{.}5$ from $175$ with NO change in the second value of $375$

AND for FIRM $2$ the output for both points drop by $5\%$ to $95$ and

$190$ respectively. Set $1$ is: and Set $2$ is:

Study Problem $-2-$ Using the table provided $-$ what output is

preferred for each plant $(114)$ to contribute to the maximum

potential profits for this company?

Study Problem $-2$ continued $-$ Using the table provided $-$ which

plant and at what output are the long run costs minimized?

Which plant is the right size to produce an output of $40$ units?

$90$ units?

Study Problem $-8-$ Using the table provided $-$ complete the

calculations for average costs and determine what is

happening at each plant regarding returns to scale:

Study Problem $-11-$ Using the table provided $-$ complete the

calculations using $$27/$unit of capital AND $$18/$unit of labor

costs. Assume $-$ at each level of output $-$ that Capital inputs

increased by $20\%$ and that Labour units decreased by $30\%$

due to automation. WHEN are increasing returns to scale

present? At WHAT output is MES achieved?