You run a specialty bicycle company, which produces a limited quantity of extremely tricked-out racing bikes. Consider

Question:

You run a specialty bicycle company, which produces a limited quantity of extremely tricked-out racing bikes. Consider the following graph, which illustrates the short-run average total cost curves corresponding to three possible plant sizes: small, medium, and large.
a. If you wanted to produce 900 bikes, which plant size should you choose, and why? What if you wanted to produce 1,100 instead?
b. If you wanted to produce 2,100 bikes, which plant size should you choose, and why? What if you wanted to produce just 1,900 instead?
c. Darken the long-run average total cost curve your specialty bicycle company faces.