Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. On the following graph, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (trianglesymbol) to plot its SRATC curve if it operates one factory (SRATC1); use the purple points (diamond symbol) to plot its SRATC curve if it operates twofactories (SRATC₂); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC). Finally, plot the long-run average total cost (LRATC) curve for Scooter's Scooters 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.?AVERAGE TOTAL COST (Dollars per scooter)40036032026024020016012060255075100QUANTITY (Scooters)125150175ASRATC,$SRATCSRATC-0-LRATO 5. Costs in the short run versus in the long runScooter's Scooters is a large American manufacturer of electric scooters operating out of Boise. Currently, the company produces all of its scootersusing a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additionalfactories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operatesout of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories)Number of Factories Q = 25126023304003Q = 50200240280Average Total Cost(Dollars per scooter)Q = 75Q = 100160200160160200160Q = 125280240200Q = 150400330260Suppose Scooter's Scooters is currently producing 125 scooters per month in its only factory. Its short-run average total cost is 5Suppose Scooter's Scooters is expecting to produce 125 scooters per month for several years. In this case, in the long run, it would choose to producescooters usingper scooter.

Economies of scale is when the increase in output decreases the average total cost Diseconomies of…

Answered: 5. Costs in the short run versus in the…

Managerial Economics: A Problem Solving Approach

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ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

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Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

On the following graph, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (triangle
symbol) to plot its SRATC curve if it operates one factory (SRATC1); use the purple points (diamond symbol) to plot its SRATC curve if it operates two
factories (SRATC₂); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC). Finally, plot the long-
run average total cost (LRATC) curve for Scooter's Scooters 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.
?
AVERAGE TOTAL COST (Dollars per scooter)
400
360
320
260
240
200
160
120
60
25
50
75
100
QUANTITY (Scooters)
125
150
175
A
SRATC,
$
SRATC
SRATC
-0-
LRATO

5. Costs in the short run versus in the long run
Scooter's Scooters is a large American manufacturer of electric scooters operating out of Boise. Currently, the company produces all of its scooters
using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional
factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates
out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories)
Number of Factories Q = 25
1
260
2
330
400
3
Q = 50
200
240
280
Average Total Cost
(Dollars per scooter)
Q = 75
Q = 100
160
200
160
160
200
160
Q = 125
280
240
200
Q = 150
400
330
260
Suppose Scooter's Scooters is currently producing 125 scooters per month in its only factory. Its short-run average total cost is 5
Suppose Scooter's Scooters is expecting to produce 125 scooters per month for several years. In this case, in the long run, it would choose to produce
scooters using
per scooter.

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