Q.5 a) Explain ATC in the long run, by circling or filling the correct words below 0 in the short run does not change as the company changes its output, for example, rent for the factory building. 0 in the short run does change as the company changes its quantity of output, for example the cost of labour. 0 The difference between the long-run and the short-run is that in the long run the firm change all of its costs, however in the short run the firm can only change its b) Consider ATC in the long run. Define the following terms by circling or filling the correct words: - Economies of scale are where long run ATC is increasing/ decreasing / constant as the quantity of output increases. Economies of scale are caused by c Constant returns to scale are where in the long run ATC isincreasing / decreasing / constant as the quantity of output increases. - Diseconomies of scale are where long run ATC is decreasing / increasing / constantas the quantity of output increases. Diseconomies of scale are caused by