Read the question and given information carefully. Show all necessary steps and reasoning that lead to theanswers. You may draw graphs by computer or by hand (very neatly) and upload the file or scanned images by clicking the "attach file" button

1. Define economies of scale and draw the long run average cost curve of a company that demonstrates economies of scale
2. List 2 reasons of economies of scale and explain how each reason can contribute to economies of scale