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is the cost of labelling the SAC important? I think the SAC 1 should be changed into SAC2 ? is the labelling important ? please

is the cost of labelling the SAC important? I think the SAC 1 should be changed into SAC2 ? is the labelling important ? please explain it step by step, thanks a lot!

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A firm employs a production function Q = F(K, L) for which only two values of K are possible, K, and K2. Its ATC curve when K = K, is given by ATC, = Q2 - 40 + 6. The corresponding curve for K = K2 is ATC2 = Q2 - 8Q + 18. What is this firm's LAC curve? ANSWER: ATC curves are parabolas. The minimum points are dATC1 = 20 - 4 = 0, Q = 2. ATC, (2) = 22 - 4 x 2+6 =2. do dATCZ = 2Q - 8 = 0, Q = 4. ATC2(4) = 42 - 8 x 4 + 18 = 2. de Therefore, AT C2 curve is located to the right of ATC, (Q1

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