The table shows the production function of Bonnie's Balloon Rides. Bonnie's pays $500 a day for each balloon it rents and $25 a day for each balloon operator it hires.

6.a. Graph the ATC curves for Plant 1 and Plant 2. Explain why these ATC curves differ.

6.b. Graph the ATC curves for Plant 3 and Plant 4.

Explain why these ATC curves differ.

6.c. On Bonnie's LRAC curve, what is the average cost of producing 15 rides and 18 rides a day? 6.d. Explain how Bonnie's uses its long-run average cost curve to decide how many balloons to rent.

Labor Output workers (rides per day) per day) Plant 1 Plant 2 Plant 3 Plant 4 10 10 13 15 20 10 15 18 20 30 13 18 22 24 40 15 20 24 26 50 16 21 25 27 Balloons 2 3 4