Question 2 SRACI Unit costs LRAC (E) SRAC2 SRAC9 SRAC3 SRAC8 W SRAC4 SRAC5 SRACT SRAC6 Quantity Q1Q2 Q3 of output Internal economies of scale Internal diseconomies of scale (units) a) Define the long run average cost curve b) Explain three types of internal economies of scale c) Explain how the movement from SRAC1 to SRAC3 on the diagram demonstrates economies of scale