For which quantities does mikes bicycle factory exhibit

Question

Problem

Mike's Bicycle Factory builds specialty bicycles with the following long-run cost function: TC = 2.5( Q³ ). Plot Mike's ATC and MC curves for quantities 1 through 5.

a. For which quantities does Mike's Bicycle Factory exhibit economies of scale?

b. For which quantities does it exhibit diseconomies of scale?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.