(a) Using Excel or some similar program, plot LRTC and SRTC for Story 2 (page 275), for x in the range 10 to 20.

(b) Derive the short-run total-cost function given on page 275 for Story 2. This will probably be difficult, so let me give you a hint. If the prices were pl = 6 and pm = 1, the cost-minimizing ratio of m to l would be 12 to 1, and, at x = 18.3154, the optimal level of l would be 64. If the prices were pl = 2 and pm = 1, the cost-minimizing ratio of m to l would be 4 to 1, and, at x = 12.6992, the optimal level of l would be 64. Even with this hint, this is probably going to be very difficult; see the solution in the Online Supplement if you are stymied.