(Solved): Cost in the short run versus in the long run. 3. Costs in the short run versus in the long run Scoot ...

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 Grand Rapids. 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 125 scooters per moath in its only factory. Its short-run average total cost is per seoster; Suppose Seooter's Scooters is expecting to produce 125 scooters per month for several years. In this case, in the long run, it would chooce to produce icooters using On the following graphy miot the three seatC curves for scooter's scooter from the previous table. Specofcally, use the green nowns (triangle symbod) to sloc its S2ATC curve if it operates ane factory (SRATCD) wite the purble points (dlamond symbol) to plot its sRATC curve if it operstirs bis hong run averaye totarl cost (cestc) curve fon Scooteris soouters wing the bive points (circle symbol). Note: Plot your points in the order in which you would like them conneded. Line segments will connect the points automatically. In the following table, indieate whether the long-run overage cost curve exhibits dconamies of seale, constant returns to scafe, or diseconomies of scale for eoch. rapge of sooster production.