The table shows the production function of Jackie’s Canoe Rides.

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January 3rd, 2018

Use the following table to work Problems 17 to 20. The table shows the production function of Jackie’s Canoe Rides.LaborOutput (rides per day)(workers per day)Plant 1 Plant 2 Plant 3 Plant 41020405565204060758530657590100407585100110Canoes10203040Jackie’s pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hires.. Graph the ATC curves for Plant 1 and Plant 2. Explain why these ATC curves differ.. Graph the ATC curves for Plant 3 and Plant 4. Explain why these ATC curves differ.. a. On Jackie’s LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week?b. What is Jackie’s minimum efficient scale?2 a. Explain how Jackie’s uses its LRAC curve to decide how many canoes to rent.b. Does Jackie’s production function feature economies of scale or diseconomies of scale?

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