Economics

Long run cost Jackie's Canoe Rides rents canoes at $100 per day and pays $50 per day for each canoe operator it hires. The table below shows the firm's total product in terms of rides per day for each plant size. Labor Plant 1 (10 canoes) Plant 2 (20 canoes) Plant 3 (30 canoes) Plant 4 (40 canoes) (workers TP1 ATCI TP2 ATC2 TP} ATC} TPA ATCA per day) (rides) (S) (rides) (S) (rides) ($) (rides) ($) 10 20 40 55 65 20 40 60 75 85 30 65 75 90 100 40 75 85 100 110 (a) Calculate the average total cost of production for each plant size. (b) Graph the average total cost of production curve for each plant size on the same diagram. (c) Indicate clearly Jackie's long run average cost of production curve in the diagram in (b). (d) Explain the underlying reason for the shape of the long run average cost of production that you have obtained