1. State whether firm is earning a normal or economic profit, or a loss. Illustrate on graph 5.

Graph #6: The Planning Curve: LRATC & Optimal Plant Size (Economies & Diseconomies of Scale) (refer to Work Book PG. 181

1. Graph the LRATC, show economies and diseconomies of scale, and mark with an “X” the company’s position.

IV. Conclusion/Summary

A. Recapitulation of Findings

B. How could the economic problem be corrected?

V. Prediction for Future

A. State your personal prediction for the future. Support your answer.

Note: Your paper must be 4-5 typed pages in length including your graphs. You must include a copy of the article you used in your research. Please attach your article to this paper, You must submit your paper with a proper cover page online by clicking on Submit Assignment in the upper right side of your screen.

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