Question 7: Output and Costs (Chapter 11) It was also mentioned in class that in the long-run all the costs are variable, owing to the ability to alter plant sizes in the longrun (in the shortrun the plant size is xed but it is still possible to increase output in the shortrun by changing the quantity of the variable inputs). The gure below gives a sequence of shortrun average total cost (ATC) curves numbered 1 through 7 corresponding to seven different plant sizes. E - m 0 U u m D g. 9: 'I Output (per day) (a) Copy the gure and draw the longrun average cost curve on the copy. (b) If the desired level of output is 100 units per day, what is the best plant size to produce this output? Give the number of the associated ATC curve. (c) If the desired level of output is 200 units per day, what is the best plant size to produce this output? Give the number of the associated ATC curve. ((1) Explain the meaning of the term \"minimum efcient scale\". (e) From looking at the graph do you think the \"minimum efcient scale\" is closer to 200 units per day or to 100 units per day