scola a normal good of an interior your explain. 10. Alejandro's Bus Rides rents buses at Mex$600 per bus per day and pays Mex$70 per day for each driver it hires. The table shows the firm's production function. Labor (workers per day) Bus Station Bus Station 1 30 50 75 85 10 Output (rides per day) Bus Bus Station Station 2 3 50 65 70 85 85 100 95 110 20 30 15 25 35 45 Buses 75 95 110 120 40 c. a. Graph the ATC curves for Bus Station 1 and Bus Station 2. Explain why these ATC curves differ. b. Graph the ATC curves for Bus Station 3 and Bus Station 4. Explain why these ATC curves differ i. On Alejandro's LRAC curve, what is the average cost of producing 50, 85, and 95 rides a week? ii. What is Alejandro's minimum efficient scale? What was happening before this point? iii. At which point does Alejandro's production function feature diseconomies of scale? What is its implication? 11. ProPainters hires students at $250 a week to paint houses. It leases equipment at $500 a week. The table sets out its total product schedule. Labor (students) Output (houses painted per week) 3 4 5 6 9 12 14 15 a. If ProPainters paints 12 houses a week, calculate its total cost, average total cost, and marginal cost. At what output is average total cost a minimum? b. Explain why the gap between ProPainters' total cost and total variable cost is the same no matter how many houses are painted. scola a normal good of an interior your explain. 10. Alejandro's Bus Rides rents buses at Mex$600 per bus per day and pays Mex$70 per day for each driver it hires. The table shows the firm's production function. Labor (workers per day) Bus Station Bus Station 1 30 50 75 85 10 Output (rides per day) Bus Bus Station Station 2 3 50 65 70 85 85 100 95 110 20 30 15 25 35 45 Buses 75 95 110 120 40 c. a. Graph the ATC curves for Bus Station 1 and Bus Station 2. Explain why these ATC curves differ. b. Graph the ATC curves for Bus Station 3 and Bus Station 4. Explain why these ATC curves differ i. On Alejandro's LRAC curve, what is the average cost of producing 50, 85, and 95 rides a week? ii. What is Alejandro's minimum efficient scale? What was happening before this point? iii. At which point does Alejandro's production function feature diseconomies of scale? What is its implication? 11. ProPainters hires students at $250 a week to paint houses. It leases equipment at $500 a week. The table sets out its total product schedule. Labor (students) Output (houses painted per week) 3 4 5 6 9 12 14 15 a. If ProPainters paints 12 houses a week, calculate its total cost, average total cost, and marginal cost. At what output is average total cost a minimum? b. Explain why the gap between ProPainters' total cost and total variable cost is the same no matter how many houses are painted