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The's Bikini is a major manufacturer of bicycles. Currently, the company produces bikini using only one factory. However, it is considering expanding Production In two
The's Bikini is a major manufacturer of bicycles. Currently, the company produces bikini using only one factory. However, it is considering expanding Production In two or irvan those factories. The following table shows the company's short-run average total cost (SRATC] each month for various levels of 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 pur bike) Number of Factories Q - 100 Q - 200 Q - 300 Q - 400 Q - 500 Q - 500 360 200 160 240 400 720 540 300 160 160 300 540 w 720 400 240 160 200 360 Supporta The's Bikin is currently producing 100 bikes par month in its only factory. Its short-run average total cast is |$ par bike. Supportin The's Bikin is expecting In produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using On what following graph, plot that thrin SRATC cornis for That's Babies from the previous tabla. Specifically, use the gravin pounds (Triangle spitbal) to plot it's SPATC curve if & operates one factory (SHATIC), was the purple points {diamond symbol) to plat it's SRATC curve if it operates two factories ( SRATC; and whe the orange pours (squire symbol) to plat it's SPATC curve if it operates threw factories (SRATC). Finally, plat the lang-rum dwerage total cost (LRATC) curve bor he's Bikes using the blue points forcle symbol Note: Plot your points in the order in which you would like them connected. Line segments will conduct the paints automatically BRAICY BRAIL AVERAGE TOTAL COST iDelars per bical -0- SHAIL, LHAIC 300 QUANTITY (Bass) In the following table, Made whither What long-run average cost curve exhibits economies of seals, constant returns to scale, or difficontaminas or wowin for each range of the production. Economies of Scale Coratant Returns to Scale Diseconomies of Scale Forwar than 300 bikes per month O O Butwin 300 and 400 bikes per month O O More than 400 Blah per month
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