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3. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's shortrun average total cost (SRATC) each month for various levels :3 production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Average Total Cost (Dollars per bike) Number of Factories Q : 1m] Q = 200 Q : 3m] Q = 400 Q : 5m] Q- : l] 1 360 ZIJIJ 160 24B 400 ?2l] 2 54B 300 168 160 3|JIJ 54D 3 }'2I] 40!] 24!] 15!] ZEIEI 36!] Suppose Ike's Bikes is currently producing SDI] bikes per month in its only factory. Its shortrun average total cost is $ per bike. Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using v . On the following graph, plot the three SRA TC curves for Ike's Bikes from the previous table. Specically, use the green points { triangle symbol) to plot its SRATC curve if it operates one factory (SRA'ICL); use the purple points {diamond symbol) to plot its SRATC curve if it operates two factories (SRATC'g); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SW3). Finally, plot the longrun average total cost (LRA TC) curve 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. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 800 A 720 SRATC 640 560 SRATC, 480 400 AVERAGE TOTAL COST (Dollars per bike) 320 SRATC, 240 O 160 LRATC 80 0 200 300 400 500 600 700 100 QUANTITY (Bikes)In the following table, indicate whether the long-run average cost curve exhibits economies of scale, constant returns to scale, or diseconomies of scale for each range of bike production. Range Economies of Scale Constant Returns to Scale Diseconomies of Scale Fewer than 300 bikes per month O O O Between 300 and 400 bikes per month O O O More than 400 bikes per month O O O