(Solved): 3. Costs in the short run versus in the long run Scooter's. Scooters is a large American manufactur ...

3. Costs in the short run versus in the long run Scooter's. Scooters is a large American manufacturer of electric scooters operating out of Spokane. 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.) Suppose Scooter's Scooters is currently producing 450 scooters per month in its only factory. Its short-run average total cost is per scooter. Suppose Scooter's Scooters is expecting to produce 450 scooters per month for several years. in this case, in the long run, it would choose to produce scooters using On the following graphy, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (criangle; Symbol) to plot its SRATC curve if it operates one factory (SRATC 1 ) is use the purple points (diamond symbol) to plot its SRATC curve if it operates two factaries (SRATC ) \( ^{\text {) }} \); and use the erange points (square symbol) to plot its 5 RATC curve if it operates three factories (SRATC 3 ). Finally, plot the fong- Suppose Scooter's Scooters is currently producing 450 scooters per month in its only factory. Its short-run average total cost is per scooter. Suppose Scooter's Scooters is expecting to produce 450 scooters per month for several years. In this case, in the long run, it would choose to produce scooters usins On the followi ree SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (triangle symbol) to \( p h \) it operates one factory \( \left(S R A T C_{1}\right. \) ) ; use the purple points (diamond symbol) to plot its sRATC curve if it operates fwo factories (SR/ arange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC \( { }_{3} \) ). Finally, plot the fongrun average t. ve 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. 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 scooter production.