Please help

"Jack of all trades, master of none". This well-known adage helps explain why firms sometimes experience economies of scale. A person who tries to do everything usually ends up doing nothing very well. If a firm wants its workers to be as productive as they can be, it is often best to give each a limited task that he or she can master. But this is possible only if a firm employs many workers and produces a large quantity of output. In his celebrated book an inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith described a visit he made to a pin factory. Smith was impressed by the specialization among the workers and the resulting economies of scale. Smith reported that because of his specialization, the pin factory produced thousands of pins per worker every day. He conjectured that if the workers had chosen to work separately, rather than as a team make twenty, perhaps not one pin a day. In other words, because of specialization, a large pin factory could achieve higher output per worker and lower average cost per pin than a small pin factory. The specialization that Smith observed in the pin factory is prevalent in the modern economy. If you want to build a house, for instance , you could try to do all the work yourself. But most people turn to a builder, who in turn hires carpenters, plumbers, electricians, painters, and many other types of workers. These workers specialize in particular jobs, and this allows them to become better of their jobs than if they were generalists. Indeed, the use of specialization to achieve economies of scale in one reason modern societies are as prosperous as they are. Answer the following questions based on case study entitled "Lessons From A Pin Factory" 1. Can a firm have a production function that exhibits increasing returns to scale, constant returns to scale, and decreasing returns to scale as output for labor are increases? Discuss your answer with a suitable diagram. (12 marks) 2.With a an appropriate diagram, distinguish between internal and external economies of scale in theory of cost in long run. Why can one be present without the other? (13 marks) Edit Format Table