SUF Ora C 3. ng.cengage.com/staticb/ui/evo/index.html?deploymentid=5832655719808280021166203&elSBN= CENGAGE MINDTAP Aplia Homework: Production and Cost in the Firm Attempts 2 Keep the Highest 2 / 4 7. Costs in the short run versus in the long run Ike's Bikes is a major cles. Currently, the company prod nly one factory. However, it is considering expanding production to two or even three fact average total cost each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes aced by all factories.) Average Total Cost (Dollars per bike) Number of Factories Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 70 30 20 40 80 160 115 8 1 8 160 70 Suppose Ike's Bikes is currently producing 600 bikes per month in its only factory. Its average total cost is $ per bike. Suppose Ike's Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, It would choose to produce bikes using On the following graph, plot the three average total cost curves (ATC) for Ike's Bikes from the previous table. Specifically, use the green points (triangle symbol) to plot its average total cost one factory (ATC ); use the purple points (diamond symbol) to plot its average total cost if it operates two factories (ATCa); and use the oran symbol) to plot its average total cost if it operates three factories (ATCy). Finally, plot the long-run average cost (LRAC) for Ike's Bikes using the blue points (circle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. ATC, 8 8 8 9 8 8 8 8 AVERAGE TOTAL COST (Dollars per bike) ATC, LRAC 100 200 300 400 500 800 760 QUANTITY OF OUTPUT (Bikes) In the long run, over which range of output levels does Ike's Bikes experience diseconomies of scale? Between 300 and 400 bikes per month More than 400 bikes per month O Fewer than 300 bikes per month 4. 8 atv C 23