Patch owns Ki&Co T-shirts and produces her t-shirts only using capital and labour. The table below represents her operation in the long run and provides information about possible combinations of capital and labour she can use to produce t-shirts. Assume that no matter how much capital or labour she uses, the price of these inputs does not change

Units of Capital	Units of Labour	Quantity of T-shirts
1	2	100
1.5	3	250
3	6	400
5	10	500

Suppose she is initially using 1 unit of capital and 2 units of labour, but she is considering increasing to 1.5 units of capital and 3 units of labour. How will this expansion affect her average total cost of production? You must explain your answer in 3-4 sentences.(Hint: consider the factor change in capital, labour, and output)

Based on your answer in (12), does the firm have increasing returns to scale, decreasing returns to scale, or constant returns to scale?

Suppose that Patch is now considering whether to increase her production from her initial 1 unit of capital and 2 units of labour to using 5 units of capital and 10 units of labour. How will this proposed expansion affect her average total cost of production. You must explain your answer in 3-4 sentences.( (Hint: consider the factor change in capital, labour, and output)

Explain why it is possible for Patch to face decreasing average total costs when she expands her production at low levels of output, but to see no change in average total costs if she expands her production at high levels of output.