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? Choose... . 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 187.5 from 175 with NO change in the second value of 375 Choose.. AND for FIRM 2 the output for both points drop by 5% to 95 and 190 respectively. Set 1 is: and Set 2 is:Choose... Choose 60; 70; 70; 70 Plant 4 with an output of 90; Plant 1 to produce 40 units; Plant 4 to produce 90 units; Jad: Constant returns to scale; Haftz: diseconomies of scale; Ynarl: economies of scale 50; 70; 90; 90 Jad: diseconomies of scale; Haftz: economies of scale; Ynarl: Constant returns to scale Plant 2; Plant 1; Plant 3 Increasing returns to scale occur between 300-600 units of output; MES is achieved at 600 units of output Plant 3; Plant 2; Plant 1 Jad: Constant returns to scale; Haftz: economies of scale; Ynarl: diseconomies of scale Plant 3; Plant 1; Plant 2 Set 1 is increasing returns to scale and Set 2 is constant returns to scale Set 1 is constant returns to scale and Set 2 is constant returns to scale Increasing returns to scale occur between 100-400 units of output; MES is achieved at 400 units of output Increasing returns to scale occur between 100-300 units of output; MES is achieved at 300 units of output Plant 1 with an output of 60; Plant 2 to produce 70 units; Plant 3 to produce 90 unit Set 1 is constant returns to scale and Set 2 is decreasing returns to scale Plant 4 with an output of 90; Plant 4 to produce 40 units; Plant 1 to produce 90 units 50; 60; 80: 90 Plant 2; Plant 2; Plant 3N TEST YOUR UNDERSTANDING Find answers on the McGraw-Hill online resource. 1. The table here shows the average costs associated with three different plant sizes. a) Which plant is best suited to produce an output of 4 units? b) What is the value of long-run average cost? Plant 1 Plant 2 Plant 3 Output Average Cost Average Cost Average Cost $45 $62 $80 36 47 63 42 36 49 55 44 36 70 68 522. Indicate the presence of either constant returns to scale or increasing returns to scale in each set of data. Total Cost Output Set 1 $ 30 000 175 60 000 375 Set 2 450 000 100 900 000 200