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Naomi’s clothing company produces hooded sweaters. Her fixed cost is the cost of her knitting machines, and her variable cost comes from maintenance for the machines and her workers. Use the table to answer the following questions. Number of Machines Fixed Cost Total Variable Cost 30 sweaters 60 sweaters 90 sweaters 1 $2,000 $2,200 $3,800 $10,800 2 $3,000 $1,800 $2,400 $10,500 3 $4,000 $1,400 $1,700 $8,150 Use the purple line segments (diamond symbol) to plot the long-run average total cost (LRATC) curve for Naomi at outputs of 30, 60, and 90 sweaters per week. Also, use the green line segments (triangle symbol) to plot the short-run average total cost (SRATC) curve at the same outputs if Naomi uses two machines. Remember to plot from left to right.
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