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(E) Determine whether the rm has economies of scale, constant economies of scale, or diseconornies of scale. Briey explain your reason. (F) (Bonus Question) Show

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(E) Determine whether the rm has economies of scale, constant economies of scale, or diseconornies of scale. Briey explain your reason. (F) (Bonus Question) Show that every short-run average total cost curve of this rm touches the long-run curve exactly once. This illustrates that the long-run average total cost curve forms an \"envelope\" of short-run average total cost curves. Hint: There is a different short-run total cost curve for each capital level. Suppose a firm has the following production function: F (K, L) = AK- LE,the firm's optimal capital to labor ratio is K/L = w/rthe firm's long-run cost function is C = (2Q/A) (w1/zr1/2 ]

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