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Please answer 2. Draw a correctly labeled graph showing a short-run average Tackle the Test: Free-Response Questions total cost curve and the corresponding long-run average

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2. Draw a correctly labeled graph showing a short-run average Tackle the Test: Free-Response Questions total cost curve and the corresponding long-run average total 1. Refer to the graph provided to answer the following questions. cost curve. On your graph, identify the areas of economies and diseconomies of scale. Cost of unit ATCa ATC6 ATC, LRATC 8 9 Quantity (units) a. The same level of fixed cost that puts the firm at point B when the quantity is 3 minimizes short-run average total cost for what output level? b. At an output level of 3, is the firm experiencing economies or diseconomies of scale? Explain. c. In the long run, if the firm expects to produce an output of 9, the firm will produce on which short-run average total cost curve and at which point on the graph

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