Esther uses seamstresses and sewing machines to produce athletic wear. Each seamstress is paid $100 per week and each sewing machine costs $125 per week to rent. She can minimize her cost of producing 1,000 units of clothing (q = 1,000) with 25 seamstresses and 20 sewing machines.

To produce 2,250 units of clothing at the lowest cost, she uses 50 seamstresses and 40 sewing machines.

Finally, the use of 75 seamstresses and 60 sewing machines produces 5,000 units of clothing at the lowest cost possible.

Part a: Roughly illustrate Esther's isoquant and isocost line graph and the LRAC curve using the information above. You must properly label the axis and the curves, including the numerical values of axis intercepts.

Part b: What type of returns to scale (choose from: increasing, decreasing, constant) and economies of scale (choose from: economies of scale, diseconomies of scale, neither economies or diseconomies of scale) is her garment factory experiencing?

Use 1-2 sentences to explain how you arrived at your answer.

Part c: Suppose q = 2,250. How should Esther adjust her output if her objective is to produce at the minimum efficient scale?

Use 1-2 sentences to explain how you arrived at your answer.