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The following graph shows the shortrun average total cost curves and the longrun average cost curve for a publishing firm. The five marked quantities indicate

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The following graph shows the shortrun average total cost curves and the longrun average cost curve for a publishing firm. The five marked quantities indicate points of tangencv between each shortrun average total cost curve (SRAIU) and the longrun average cost curve ( LRAC); for example, Q1 marks the point of tangencv between SRAIFC1 and LRAC. The orange point on SRAIU1 indicates the firm's current output level in the short run ((22). ('2) COST PER UNIT QUANTITY OF OUTPUT In the long run, if the firm decides to keep output at its initial level; what will it likely do? O Shift to operate on 33.4303 0 Stay on :9le but decrease to the point touching LRAC 0 Shut down O Shift to operate on SRAIU2 Over which range of output levels do you find economies of scale? 0 o to {21 O o to Q5 0 Q2 to Q4 0 Greater than Q3 0 UtDQg

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