Curves practice questions

Question 6: Consider the production of some output Q. Draw a diagram with the quantity Q on the horizontal axis and the cost per unit produced on the vertical axis. Draw the following four curves: 1. Long run average cost curve, labelled LAC 2. Lon run marginal cost curve, labelled LMC 3. Short run average cost curve for fixed capital level K=6, labelled SAC 4. Short run marginal cost curve for a fixed capital level K=6, labelled SMC Make sure your drawing is consistent with all of the following assumptions: The LAC and SAC curves have unique minima. ii. The long run average costs are minimized at production level 8. The minimal long run average cost is 4. iii. The long run average cost at production level 15 is 7. iv. The optimal input bundle to produce 12 units of output is K=6 and L=4. V. The short run average cost of producing 16 units of output with K=6 is 3 units higher than the long run average cost of producing 16 units of output