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Question: ikes bikes is a major manufacturer of bicycles currently the...

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Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost each month for various levels of production if it uses one, two, or three factories. Ikes Bikes is a major manufacturer of bicydes. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factonies. The tollowing table shows the companys short-run average total cost each month for various levels of production if it uses one, two, or three factories. (Note: equals the totalqantity of bikes produced by all factories.) Average Total Cost (Dollars per bike) Number of Factories 100 200 300 320 400 480 400 - 500 600 320 240 240 440 240 240 320 480 400 120 720 440 Suppose Ikes Bikes is currently producing 600 bikes per month in its only factory. Its short-run average total cost is per bike Suppose Ikes Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using On the following graph, plot the three short-run average total cost curves (SRATC) for Ikes Bikes from the previous table. Specificaily, use the green points (triangie symbol) to plot its short-run average total cost i t operates one factory (SRATCJ; use the purpie points (dlamond symbol) to piot its short-ณn average total cost ifit operates two tactores (SRATC2); and use the orange points (square symbol) to plot its short-run average total cost ir it operates three factonies (SRATC3). Finally,piot the jong-run average totaí cost (LRATC) for Ikes BIkes using the blue points (circle symbol)

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically TA SRATC, 5E0 SRATC SRATC LRATC 100 23040500 00 700 QUANTITY OF OUTPUT (Bikes) In the long run, over which range of output levels does Ikes Bikes experience constant returns to scale? Between 300 and 400 bikes per month Fewer than 300 bikes per month More than 400 bikes per month

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